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E Ivor Hughes Education Foundation v Leach, Chancery Division, 14 June 2005

21 June 2005
The issues

Split Orders for Costs – Costs – Part 36 Payment – Exaggeration of Claim

The facts

The Claimant brought proceedings against the Defendant alleging breach of duty and dishonesty. Damages of over £600,000.00 were claimed. A Payment In of £5,000.00 was made and accepted. The Payment In had been made in respect of one part of the claim only. On acceptance of the Payment In the Claimant abandoned the rest of the claim.

The decision

It was clear that the Claimant had seriously exaggerated its claim and made a number of serious allegations that had been abandoned. It was clear that the Defendant was entitled to be regarded as a successful party in respect of the abandoned elements of the claim. Consequently whilst the Defendant would be ordered to pay the costs of the claim in respect of which the Payment In had been made, the remainder of the costs would be paid by the Claimant.

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