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Webb v Environment Agency QB (Sweeney J) LTL 5/4/2011

Webb v. Environment Agency QB (Sweeney J) LTL 5/4/2011

The Environment Agency’s late introduction of a defence which resulted in the court proceedings having to be discontinued in favour of Lands Tribunal proceedings, in which the claimant was largely successful, justified a departure from the usual costs rule under CPR 38.6. Usually under this rule the claimant is liable to pay the defendant’s costs where proceedings have been discontinued.
Webb had issued proceedings against the Environment Agency for property damage as a result of flooding caused by the installation of a grate in a watercourse maintained by the agency. The agency maintained the defence that there had been a failure to act that did not give rise to any liability. However, the agency later amended its defence to contend the installation of the grate was a positive act under section 165 of the Water Resources Act 1991. The parties agreed for the matter to be heard by the Lands Tribunal and Webb agreed to discontinue the court proceedings.
Court ruled that although Webb had recovered substantially less than initially claimed, they could truly say they won the case and therefore the normal costs rule under CPR 38.6 (1) would not apply. It was not Webb’s fault that the agency had failed to recognise the section 165 defence applied. Court ordered that the agency pay 80% of Webb’s base costs plus disbursements.

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