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    Costs warning on failure to mediate in package holiday claims

    Monday, November 21, 2016
    Master James recently slashed a £456,000 costs bill by limiting the amount the Claimant could recover to an estimated £40,000 in an unreported case brought against First Choice Holidays for problems with package holidays they supplied to Holiday Village Complex in Turkey back in 2009.

    The basis of that decision centred on 152 out of 599 Claimants who had not suffered from any personal injury but brought claims for diminution of value, loss of enjoyment and out-of-pocket expenses.

    The court capped the recoverable costs at the amount the Defendant would have paid to the ABTA scheme noting that the scheme would have been ‘perfectly adequate’ for those claimants without personal injuries. Master James went on to say:
    “I find that it was neither reasonable nor proportionate to run up nearly half a million pounds in base costs of litigating those 152 matters, nor do I find that claiming them alongside the ill claimants’ damages in the group litigation was a reasonable and proportionate step. It certainly didn’t save any costs, quite the contrary as far as I can see.”

    The ABTA arbitration scheme provides a route for alternative dispute resolution for complaints made against signatories to the scheme.

    Those involved with litigation will need to consider the suitability of such alternative dispute resolution options as are available or face having the recoverable costs slashes as a penalty in accordance with the case of Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576.

    The full article with details of the judgement was posted by Litigation Futures at this link.

    For advice on Alternative Dispute Resolution in your case contact our travel team. The full article with details of the judgement was posted by Litigation Futures at this link. For advice on Alternative Dispute Resolution in your case contact our travel team.

    Alex Orndal



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