Rathie v ING Life Ltd

The case of Rathie v ING Life Ltd involved a dispute where the plaintiff, Rathie, sought costs from the defendant, ING Life Ltd, following the discontinuation of a third party proceeding. The plaintiff argued that the defendant should indemnify him for the costs of the third party proceeding as well as its own costs associated with that proceeding, which were to be assessed on a standard basis. The dispute was heard in the relevant court, which was required to decide whether the defendant should bear the costs of the third party proceeding.

The primary legal issue before the court was whether it was appropriate for the defendant to be ordered to indemnify the plaintiff for the costs of the third party proceeding and its own costs, given that the defendant had initiated the third party proceeding without leave of the court and before the plaintiff had a chance to indicate their stance on the proceeding. The court also had to consider whether the issue raised in the third party proceeding was one that was relevant to the dispute between the plaintiff and the defendant.

The court found that the costs order should not be based solely on whether it was reasonable for the defendant to bring the third party proceeding in light of the plaintiff’s claims. The court emphasised that the defendant had issued the third party proceeding without the court's leave and before the plaintiff had the opportunity to express their position on the proceeding. Additionally, the plaintiff had subsequently amended their statement of claim to abandon the allegations upon which the third party claim was based. Given these circumstances, the court concluded that it was appropriate for the defendant to bear the costs of the third party proceeding, both for the third party and for itself.

The court ordered that the defendant pay the third party’s costs of the third party proceeding, to be assessed on a standard basis, and that as between the plaintiff and the defendant, the defendant bear its own costs of the third party proceeding.