Small v Phillips (No 3)

The appeal concerned the appropriate basis for awarding costs in proceedings brought within the protective jurisdiction of the court, specifically relating to the estate of Mrs Phillips. The appellant sought an order that their costs be paid on an indemnity basis, while the first and second respondents sought costs on the ordinary basis, and the third and fourth respondents also sought costs on an indemnity basis. The Court of Appeal was required to determine whether the appellant's costs, and indeed the costs of all parties, should be paid out of Mrs Phillips' estate, and on what basis (ordinary or indemnity) each party's costs should be assessed.

The Court determined that the costs of all parties, both for the appeal and the proceedings in the Equity Division, should be paid out of the estate of Mrs Phillips. This reflected the court's exercise of its protective jurisdiction, where the interests of the person under protection (Mrs Phillips) are paramount. The court further ordered that the appellant's costs and the costs of the third and fourth respondents be paid on the indemnity basis. Conversely, the costs of the first and second respondents were ordered to be paid on the ordinary basis.