The Court of Appeal has urged parties in a showdown over a 'stagggering' multi-million-pound costs bill to take a ‘realistic’ approach to resolution.
Ruling in The Federal Republic of Nigeria v VR Global Partners LP & Ors both Lord Justice Males and Lady Justice Andrews were highly critical of the ‘eye-watering’ £44m - plus interest - being claimed. The costs proceedings followed what the judgment described as ‘heavy and high profile litigation’ arising out of the setting aside of two arbitration awards totalling $11.1bn between the government of Nigeria and oil company Process & Industrial Developments Ltd (P&ID). P&ID was ordered to pay an interim £20m on account of costs.
Nigeria has commenced proceedings for the assessments of its costs and applied for a third party costs order against funder VR Global Partners, after P&ID directors admitted that no arrangement was in place to meet any adverse costs order. This application was stayed by Mr Justice Robin Knowles pending the conclusion of the detailed assessment; that decision was upheld by the Court of Appeal.