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Costs

Order for costs - Indemnity basis - Cross-examination hearing - Claimant alleging that defendant had not engaged in good faith with cross-examination process JSC Mezhdunarodniy Promyshlenniy Bank and another v Pugachev [2015] [2015] EWHC 1694 (Ch); [2015] WLR (D) 255

23 June 2015

Ch D: Hildyard J

• 12 June 2015

The court had power to make a costs order on a indemnity basis against a party who had not engaged in good faith with the cross-examination process and who had intended to obstruct justice.

Hildyard J so held when allowing an application brought by the claimants, JSC Mezhdunarodniy Promyshlenniy Bank and State Corporation "Deposit Insurance Agency", for an order that the defendant, Sergei Viktorovich Pugachev, pay the costs of a hearing on an indemnity basis. At that hearing the defendant had been cross-examined in respect of his assets, which were subject to freezing orders in aid of foreign proceedings. The claimants based their claim for indemnity costs on an allegation that the defendant had been evasive and, in certain specifically identified instances, had been dishonest.

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