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High Court, following the conclusion of debt recovery proceedings, grants successful plaintiff's application to set-off its net award granted by the trial court against an order for legal costs made against it (after the defendant was successful in its counterclaim and awarded seven day's legal costs), which, although not yet taxed, may exceed substantially the net award granted in its favour, on the grounds that: 1) the plaintiff has little prospect of recovering its judgment against the defendant unless it can set-off the award; and 2) an opposing solicitor's legal costs cannot rank in priority to the plaintiff's entitlement to set-off.
Legal costs - Order 99, r.4 RSC - set off of award of damages made in plaintiff's favour against award of costs made in defendant's favour - debt proceedings - plaintiff successful - straightforward claim - defendant's successful counterclaim raised complex issues of law and fact - nine court days - net award to plaintiff - significant costs awarded to defendant - balance in favour of plaintiff in terms of monetary award - balance in favour of defendant in terms of costs - defendant's costs yet to be taxed - final figure may exceed plaintiff's net award - power to set-off legal costs - court's inherent jurisdiction - monetary award and award of costs arise from same 'cause or matter' - plaintiff unlikely to recover its judgment against defendant unless it can set-off that award as against the award of costs - solicitor's lien over legal costs cannot rank in priority over plaintiff's entitlement to a set-off.
Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.
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