Royal Courts of Justice
Strand
London WC2
B E F O R E:
MR JUSTICE MOSES
THE QUEEN ON THE APPLICATION OF LITTLEWOODS ORGANISATION PLC
(CLAIMANT)
-v-
COMMISSIONERS OF CUSTOMS AND EXCISE
(DEFENDANT)
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MR M PATCHETT-JOYCE appeared on behalf of the CLAIMANT
MISS P WHIPPLE appeared on behalf of the DEFENDANT
J U D G M E N T
(As Approved by the Court)
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1. MR JUSTICE MOSES: I am happy to recall that in this case the parties have come to a sensible arrangement whereby the Customs are allowing Littlewoods estimation, in order to see whether they can do better, and thereafter the question in relation to long-term estimation within Regulation 29(3) can be considered for the future.
2. The question now arises as to whether Customs and Excise should pay Littlewoods' costs or a proportion of those costs. What was sought from the outset was long-term approval. Littlewoods say not only was the guidance unclear as to the availability of short-term approval, but in May 2002, unknown to them, consideration was given by an official of Customs and Excise as to whether to grant short-term approval. Accordingly, they should have been told that; and had they been told that, a deal could have been done much earlier without having to launch these proceedings.
3. I disagree. It is quite apparent that when Littlewoods did know that short-term approval might be available come January of this year, they still did not take the opportunity of accepting that or seeking to do a deal on that basis, but persisted in saying that it really was not practical for them to do any better than they were doing or there was going to be some improvement. In those circumstances, they persisted in seeking long-term approval.
4. I sincerely hope that the good sense that has prevailed now will continue to prevail. Indeed, I have every confidence that it will do so. This was a case which cried out for sensible negotiation and give and take from the outset.
5. It is not surprising that both parties, perfectly reasonably, during the course of negotiations kept their powder dry. Customs on the one hand seeking to gain improvements and better efforts from Littlewoods; Littlewoods, on the other hand, seeking to maintain their stance that they were entitled to estimation for the long term.
6. To reflect that situation, in my judgment, the fair order is one of no order for costs. That is the order that I make.
7. MISS WHIPPLE: Can I take it from my Lord's short judgment that reads over into the costs of today also?
8. MR JUSTICE MOSES: Yes, it does. Everybody to pay their own costs.