The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:
This Practice Note sets out the general rule in CPR 38.6 that on discontinuing a claim, the claimant will pay the defendant costs unless that presumption that defendant will recover its costs is displaced. The guiding principles in respect of discontinuance costs are set out in the case of Teasdale v HSBC Bank, approved by the Court of Appeal in Brookes v HSBC Bank. The Practice Note sets out the application of these principles and the issues the court will consider when determining whether to depart from this general rule, eg the reasons for the discontinuance and whether the claimant would have succeeded at trial had the claim continued, any change in circumstances which justifies the switch in recoverability from defendant to claimant and the defendant’s conduct during the proceedings as justification for departure from the general rule on discontinuance.
When a claimant discontinues the proceedings, there is a presumption by reason of CPR 38.6 that the defendant should recover their costs.
The presumption in CPR 38.6 is that the discontinuance of a claim by a claimant against a defendant will usually amount to an admission or an acceptance that the proceedings should never have been commenced. In such a case, the starting point must be that the defendant is entitled to its costs (Ashany v Eco-Bat Technologies
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