Risk Of Wasted Costs Orders

In the recent decision in Joyce Whitfield v Revenue & Customs Commissioners [2016] UKFTT 685 (TC) the Tribunal considered that inflexible and disproportionate behaviour by a party's legal representative, which resulted in a hearing having to be adjourned, warranted an award of wasted costs.

The Tribunal's comments will be instructive also for cases conducted under the Civil Procedure Rules ("CPR"). Further, they serve as a useful reminder that parties to litigation are under a positive duty to assist in promoting the overriding objective and both they and their legal representatives can be penalised in costs if this duty is breached.

Where a legal representative has behaved in a manner that is improper, unreasonable or negligent in the conduct of proceedings, there is statutory power (section 51(6) of the Senior Courts Act 1981) for an order to be made against that representative...