Privinvest Companies Must Pay Ms Lucas's Costs For Unsuccessful Part 20 Claim

THE REPUBLIC OF MOZAMBIQUE V CREDIT SUISSE INTERNATIONAL AND OTHERS [2025] EWHC 395 (Comm)

“In these proceedings Mozambique made allegations against but did not bring a claim against a number of people, Ms Lucas among them. Ms Lucas’ participation beyond that which was caused by the claim by Credit Suisse against her was because the Privinvest Companies chose to bring and maintain an additional claim against her.”

Citations

Young v JR Smart (Builders) Ltd (Claim for Fees) 7 February 2000, unreported, CA Third-party costs were normally borne by a claimant who discontinued the primary claim, establishing an assumption that discontinuance led to liability for associated costs. Birchell v Bullard [2005] EWCA Civ 358 A defendant on a counterclaim who issued a Part 20 claim against a third party as a reasonable and proper response was prima facie entitled to recover the associated costs from the counterclaiming defendant.

Track allocation housing disrepair CPR 46.13 settlement sum costs restriction SCCO

MRO fee markup cap 25% detailed assessment personal injury Senior Courts Costs Office

Security for costs refused CPR 25.27 very high probability success excessive estimate King's Bench

IPEC scale costs transfer Patents Court PD 30 para 9.2 costs caps Court of Appeal

Costs budget variation CPR 3.15A promptness significant development unfair prejudice Chancery Division

Costs budgeting inter partes proportionality high hourly rates AI disclosure Patents Court CPR 3E

Beneficiary personal liability section 71(3) Solicitors Act 1974 indemnity costs VAT self-supply SCCO

Summary assessment indemnity costs unless order payment on account disclosure default Chancery Division

Provisional assessment set aside CPR 3.1(7) points of dispute filing duty PD 47 para 14.3 SCCO

Fixed recoverable costs police claims CPR 26.9(10)(e) intentional tort exemption

Key Points

A defendant bringing a Part 20 claim takes the risk that they may be liable for costs, regardless of the ultimate outcome of the main claim. The reasonableness of issuing such a claim must be assessed beyond the defendant’s own defence strategy. [19]
Where allegations are made but no formal claim is brought, the party introducing the allegations is not automatically liable for costs incurred due to a Part 20 claim issued by another party. Liability for costs depends on the justice of the case and the choices made by the Part 20 claimant. [12, 16, 19]
The principle that a discontinuing claimant will ordinarily bear costs applies primarily to formal claims, not merely to allegations that are abandoned during litigation. The costs liability for third-party or additional claims must be determined on a case-specific basis. [10, 12, 15]

A party seeking an indemnity or contribution for additional claims must establish that it was reasonable to bring those claims in light of the overall litigation. Courts retain discretion in determining how costs consequences should be allocated in multi-party proceedings. [11, 14, 18]
Where an additional claim is struck out, the claimant in that claim will generally be responsible for the costs of both the application to strike out and the defence of the claim unless the court determines that another party should bear those costs based on overarching fairness and justice. [22-24]

“Ms Lucas was caused to incur costs. From the point of view of the Privinvest Companies it may have been reasonable to issue the additional claim. But this is from the self-interested vantage point of their defence strategy. I am not persuaded that it was reasonable for the Privinvest Companies to use an additional claim without that involving at least the risk that they might have to meet costs whatever the outcome.”

Key Findings In The Case

The Privinvest Companies issued a Part 20 claim against Ms Lucas as a precautionary measure, in case Mozambique’s allegations against her were upheld. However, they did not endorse Mozambique’s allegations or assert an independent claim of bribery against her. [17]
Mozambique did not bring a formal claim against Ms Lucas, despite making allegations against her, and subsequently clarified that it would not pursue a case reliant on a finding that she was bribed. This led to Ms Lucas successfully applying to strike out the Part 20 claim against her. [3-4]
Ms Lucas incurred legal costs due to the Privinvest Companies’ additional claim against her. She sought recovery of 50% of her costs from the point of service of the claim until its termination, excluding the costs of the strike-out application and the present costs hearing. This percentage-based approach was accepted by the court as fair and efficient. [6-7]

The Privinvest Companies sought an order that Mozambique indemnify them for the costs they incurred in their claim against Ms Lucas and for Ms Lucas’s own defence costs. The court rejected this, ruling that Mozambique had refrained from claiming against Ms Lucas and should not bear the financial consequences of the Privinvest Companies’ litigation decisions. [5, 19-20]
As the Privinvest Companies’ additional claim against Ms Lucas was struck out, the court ordered them to pay her legal costs for defending the claim and for the strike-out application. Additionally, they were ordered to pay £450,000 as a payment on account by the end of March 2025, subject to detailed assessment. [24, 28]

“I have stood back to consider the context and circumstances in which, in these complex multi-party proceedings, allegations about Ms Lucas or a claim against Ms Lucas were made and were pursued, and by whom, and for what period, and with what consequences. I am quite clear that the just result in these proceedings is that the relevant costs involved with the additional claim should be met by the Privinvest Companies.”

Specialist costs services across the UK

TMC Legal provides expert costs drafting, negotiaton and costs budgeting services together with representation in detailed assessment hearings. Our experienced costs lawyers and law costs draftsmen act nationwide. Contact us today.