Intercity Telecom Ltd & Anor v Solanki

Simon Pritchard (Counsel) instructed by Shakespeares (Solicitors) for Claimants. The Defendant chose not to appear and was not represented. ____________________

In addition, the Claimants have lost business with 4C and EvoEnergy because Mr Solanki diverted (or attempted to divert) that business away from Intercity:

'The applicable principles, in a case where indemnity costs are claimed on the ground that the paying party's conduct was unreasonable, so far as relevant to this claim, are as follows:

(a) As the very word 'standard' implies, the standard basis will be the normal basis of assessment where the circumstances do not justify an award on an indemnity basis. For there to be an order for assessment on the indemnity basis, there must be some conduct or some circumstance which takes the case out of the norm. That is the critical requirement.

(b) Dishonesty or moral blame does not have to be established to justify indemnity costs. But indemnity costs are appropriate only where the conduct of the paying party was unreasonable to a high degree. "Unreasonable" in this context does not mean merely wrong or misguided in hindsight.