Costs follow the event at sea

‘Krysia’ Maritime Inc v Intership Ltd [2008] EWHC 1880 (Admlty) [2008] All ER (D) 12 (Aug); NLJ 8 August 2008 p1148

The defendants had been held 70% liable for damage caused to a vessel owned by the claimant through the fouling of its propeller by a rope attached to the defendant’s vessel, contributory negligence being assessed at 30%. The defendant contended that, although the claimant was the party that ‘had really won at trial’ on the issue of liability, it was inappropriate for the court to adopt the general rule in r44.3(2)(a) in the Civil Procedure Rules, of costs following the event, and award the claimant the entirety of its costs. In particular, it was inappropriate for the claimant to receive all its costs because, first, the court had held that the claimant was 30% to blame for the fouling of the propeller. Second, applying ss187(1) and 187(2) of the Merchant Shipping Act 1995, the longstanding practice in the Admiralty Court was that costs should reflect the court’s decision on the degree of blame which attached to each of the parties.