Indemnity basis

Mahme Trust Reg and others v Lloyds TSB Bank plc [2006] EWHC 1782; ChD 14 July

The claimants’ claim was for an account of the bank’s dealings as executor with the estate of the deceased over a 14-year period. The claimants failed to establish any justification for bringing such a claim and at no time had the bank been in default. Nine of the 13 claims for damages had been discarded during the course of amendments without explanation. The conduct of the litigation overall had taken the case out of the norm in such a way as to justify an order for costs on the indemnity basis. The claimants’ allegation that the bank’s conduct of the litigation had lead to an unjustified increase in their costs would be dealt with by the costs judge, notwithstanding that the overall order was for payment of the bank’s costs on the indemnity basis.