Cryptoassets for dispute resolution lawyers

The content in this subtopic covers digital assets, principally cryptoassets, currently commonly seen in the form of cryptocurrencies (eg Bitcoin), and smart contracts. At the heart of both is a combination of intangible property or property rights issues derived from new digital technologies. In this respect, developments in the ‘digital world’ have given rise to new issues for the lawmakers (both domestically and internationally) to grapple with.

The content in this subtopic is concerned with how these technological developments are dealt with under English law and from the perspective of how issues pertaining to them may arise in the work of dispute resolution lawyers. That is, when and how rights (and obligations) in respect of such assets arise, can be identified, transferred, protected and enforced under English law.

We may also consider within this subtopic other digital assets such as NFTs (non-fungible tokens) and digital securities (ie equity or debt securities issued and transferred on ‘distributed ledger technology’ (DLT) systems) where, again, given the new technologies surrounding these assets and their creation and transfer within these new environments, they give rise to similar issues as to

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Third party costs—Court of Appeal confirms stay pending detailed assessment is case management decision (Federal Republic of Nigeria v VR Global Partners LP)

Dispute Resolution analysis: The Court of Appeal has upheld the decision of a judge at first instance to stay an application for a third-party costs order under section 51 of the Senior Courts Act 1981 until after the conclusion of the detailed assessment of the underlying bill of costs. Dismissing Nigeria’s appeal, the Court of Appeal held that there is no presumption that a third-party costs application should be determined before a detailed assessment. The question is purely one of case management, to be decided in accordance with the interests of justice and the overriding objective. The decision, being within the scope of discretion allowed a judge, was not amenable to appeal; that a different judge would have reached a different conclusion was not in point. Where there is a real question whether any further sum will be payable following assessment (particularly where a substantial payment on account has already been made and costs are to be assessed on the standard basis), it is legitimate to stay the third party application to avoid wasting court resources on what may prove to be a pointless satellite exercise. Of general and at least equal significance to costs practitioners were the Court of Appeal’s strong comments (obiter dicta in strict terms) deprecating disproportionate detailed assessment processes and endorsing the use of sampling as a case management tool in cases involving very significant bills of legal costs. Written by Lauren Godfrey, barrister at Gatehouse Chambers.

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