A major decision in respect of the recovery of litigation funding costs. The High Court upheld the decision of an Arbitrator to allow the recovery of the costs of securing third party funding as costs.
The third party funding consisted of an advance of £647,086.49 which was repayable either at 300% of the sum advanced from the damages recovered, or 35% of the damages, whichever was the greater. Essar disputed the tribunal’s jurisdiction to make an award in respect of third party funding before the Tribunal. Having lost it secured permission to appeal from the High Court, but on the hearing of the substantive appeal for which judgment was delivered today, the High Court dismissed the appeal holding that the said third party costs were recoverable in principle. The court accepted the submission that the terms of s.59(1)(c) and the reference to “legal and other costs” was wide enough to permit the recovery of third party funding costs. Essar Oilfield Services Limited v. Norscot Rig Management Pvt Limited