A Bristol-based partner with law firm Thrings has won a hearing in the Supreme Court for his client, the state of Romania, ending an international legal costs dispute.
The judgment followed a Supreme Court hearing in March over the correct interpretation of a costs order made by the court in 2020 that gave five claimant parties, represented by two law firms, one set of costs. 
That earlier order had also ruled how and when legal costs incurred or paid in a foreign currency should be converted into sterling for the purposes of a detailed assessment.
Alastair Glover, pictured, who works in Thrings’ commercial dispute resolution team, was instructed on behalf of Romania to seek to overturn the order.
The original dispute involved the loss of tax incentives to Romanian-born Swedish investors Viorel and Ioan Micula and their businesses following the ending of a bilateral investment treaty between Romania and Sweden when Romania joined the EU.
Following a lengthy legal process that involved the International Centre for Settlement of Investment Disputes (ICSID) arbitration award, the General Court of the EU and the UK Supreme Court, a further dispute arose over the interpretation of costs.
The Micula parties argued that the Supreme Court’s decision entitled them to claim one combined set of costs drawn from both their law firms’ bills of costs but removing any duplicated items – which would have allowed them to claim a much higher proportion of the total legal costs they had spent.
Representing Romania, Thrings successfully argued that they were entitled to claim the costs and disbursements of only one law firm.
Handing down a detailed judgment on 23 May, the Supreme Court sided with Romania on all points.
The Court also agreed with Romania’s submissions arguing that the costs should be claimed in sterling at the exchange rate on the day they were paid by the client and not, as the Micula parties had contended, when the bill was filed with the Court.
This is particularly relevant to international law firms conducting litigation in the UK who charge in foreign currencies, and where overseas clients pay a law firm’s litigation costs in a currency other than sterling.
Thrings also has offices in Bath, Bristol, London, Lydney, Romsey, Ross-on-Wye and Swindon.
