High Court Finds Costs Of Attending Inquest Are Recoverable Where Liability Not Formally Admitted

• Published date: 07 October 2020
• Subject Matter: Employment and HR, Employee Benefits & Compensation, Employee Rights/ Labour Relations
• Law Firm: Clyde & Co
• Author: Mr Jonathan Shaw

Considering the recoverability of the costs of an inquest, the High Court concluded that although the Defendant had confirmed in open correspondence it was willing to compensate the claim on a full basis, it had not admitted liability. As such the Claimant was entitled to treat this statement as being capable of withdrawal. Liability could therefore be said to be an issue between the parties and the costs of the Claimant attending the inquest were recoverable.

Greater Manchester Fire and Rescue Service v Susan Ann Veevers [2020] EWHC 2550 (Comm)

Background

The Claimant's son was employed by the Defendant when he was killed in the course of his employment in July 2013. The Claimant brought a claim for damages. Shortly before the inquest the Defendant advised they were "willing to compensate the estate and dependants" and "deal with the claims on a full basis". Within the same correspondence, it was stated that the Defendant was "not in a position to consider an admission of liability".

The Claimant therefore confirmed she would "continue to prepare for the inquest" as part of liability investigations, and invited the Defendant to formally admit liability when served with the letter of claim to allay concerns that the "intention to pay compensation to the estate and dependents could be withdrawn at any time". The Defendant responded it was unnecessary to prepare a letter of claim as the claims would "be met without reduction".

At first instance, Deputy District Judge Harris held that as there was no formal admission of liability by the Defendant, the Claimant was entitled to perceive there was a risk the Defendant might resile from its statement confirming compensation would be paid. Therefore, the Claimant's costs of preparing for and attending the inquest were in principle recoverable, subject to detailed assessment.

Appeal

The Defendant appealed the decision, submitting that the costs of preparing for and attending the inquest were not properly recoverable as being of and incidental to the claim for damages. The Defendant further argued that it's "clear and unequivocal position" before the inquest was that "whatever any investigations might throw up" the Claimant's claim would still be fully met without contributory negligence being raised and regardless of whether a third party became involved.

The Claimant should therefore have avoided incurring the costs of instructing lawyers to attend the inquest for the purpose of investigating liability. Therefore...