Photobooth Props Limited & Anor. v Nepbh Limited & Ors.
Decision date: 27 June 2022
Neutral citation: [2022] EWHC 1634 (IPEC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This IPEC judgment concerned whether costs of three interim applications (claimants' summary judgment and defendants' strike out and security for costs) and related CMC costs should be summarily assessed and payable immediately or reserved to trial. The court held that CPR 63.26(1) creates a strong presumption that costs of interim applications in IPEC proceedings are reserved to the conclusion of the trial, displacing the usual PD44 "pay as you go" presumption, and refused the claimants' requests for immediate summary assessment, disapplication of IPEC caps, or uplift for unreasonable conduct. The CMC costs were ordered to be costs in the case.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The ratio is that in IPEC proceedings CPR 63.26(1) ordinarily requires reservation of costs of interim applications to the end of the trial (or relevant phase), displacing PD44.9.2(b), and that summary assessment of costs within IPEC stage caps is generally better undertaken at the end of the relevant phase unless exceptional circumstances or conduct amounting to unreasonable behaviour under r.63.26(2) are shown.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment commented that interim successful costs awards, even if below a stage cap, can risk overcompensation when assessed without regard to the whole phase; and that "unreasonable conduct" for r.63.26(2) concerns conduct in relation to court processes and will not be made out by ordinary adversarial litigation between SMEs.