Disclosure – Costs Recoverability After Late Withdrawal of Claims to Confidentiality

Background and Costs Issue in this Case

The case of LLC Eurochem North-West 2 & Anor v Societe Generale SA & Ors (Re Costs) [2025] EWHC 1999 (Comm) (31 July 2025) arose from EuroChem’s application for wide-ranging disclosure against a third party, Tecnimont S.P.A. on the 21^st March 2025. The application was largely dismissed at the Pre-Trial Review on the 8^{th of} April 2025, with some issues adjourned (and costs reserved) pending a search of a newly discovered laptop. That search revealed a chain of emails between Tecnimont and the Comitato di Sicurezza Finanziaria ("CSF"), a department within the Italian Ministry of the Economy and Finance, which Tecnimont refused to disclose, citing Italian law. At a further hearing on the 13^{th of} June 2025, the Court ordered disclosure of the document, finding it relevant and necessary.

Tecnimont later challenged the Claimants’ confidentiality claims over 55 documents. The Claimants withdrew most claims shortly before the hearing on the 25^{th of} June 2025, resulting in a mixed outcome. The Court found Tecnimont generally successful but acknowledged the Claimants’ success on key documents.

Main Practical Costs Points

The case highlights the importance of complying with the general rules regarding costs under CPR 44 including in third-party disclosure applications. The Court indicated that where costs are to be assessed on the standard basis, costs must be proportionate and reasonably incurred as it applied a 40% reduction against solicitor hours and a 30% reduction against hourly rates, noting the figures exceeded guideline rates. The judgment also reinforced that late concessions, for example, withdrawing confidentiality claims shortly before a hearing, may result in adverse cost consequences as the Courts will consider conduct before and during proceedings when determining costs recoverability. 

For more information about the law, technology and practice of disclosure, contact Tom Whittaker or David Hine.