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Competition Law

Analysis - debate - current awareness

03 NOV 2011

Construction cover pricing appeal – CAT ruling on costs

The CAT has today ruled on an application by North Midland Construction plc for the OFT to pay its costs of appeal against the OFT’s construction cover pricing decision (in which the CAT significantly decreased the total fine of £129.2m imposed by the OFT on 103 construction companies, labelling it ‘excessive’ and ‘disproportionate’). Given that North Midland was successful in its appeal in relation to one infringement and the CAT significantly reduced the penalty imposed in relation to a second infringement, the CAT followed other recent costs judgments in holding that the approach to be taken as regards costs should be the same for both penalty and liability appeals and, as a starting point, the winning party should be entitled to claim its costs.  The CAT therefore ordered the OFT to pay North Midland 75% of its costs (as opposed to making a cross-order in favour of the OFT in respect of its costs on the issues on which the OFT was successful).

Click here to see the CAT’s ruling on costs.

Jessica Burns

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