Tomic & Stein vs The Residences by Damoor Ltd & Cotran

This case involved a dispute over compliance with a freezing injunction and the subsequent costs incurred, arising from a property renovation project.

TLDR:

• The Claimants applied for orders to confirm and secure compliance with a freezing injunction.
• The Court found that the Second Defendant had breached the Undertaking.
• The Court assessed costs on an indemnity basis for certain periods and on a standard basis for others.
• The Claimants were awarded a total of £21,000 in costs.

The Claimants, Ana Tomic and Jens-Peter Stein, engaged The Residences by Damoor Limited (DRL) and its director, Anthony James Camille Cotran, for renovation works at a residential property. Disputes arose when the Claimants alleged that substantial payments made to DRL were diverted for Mr. Cotran's personal benefit.

On 1 February 2023, the Court dismissed the Claimants' application for a freezing injunction, but Mr. Cotran gave an Undertaking regarding the sale proceeds of his family home. The Claimants later applied for orders to confirm and secure compliance with this Undertaking, as they were concerned about Mr. Cotran's failure to respond to their queries.

The Court found that Mr. Cotran had breached the Undertaking by not depositing the sale proceeds into a specified account and by making unauthorized withdrawals. The Claimants' application was successful, and the Court approved a Modified Undertaking on 11 April 2024, which included transferring the remaining sale proceeds to Mr. Cotran's solicitors.

The Court also addressed the costs incurred by the Claimants. The costs were assessed on an indemnity basis for the periods covered by Schedules 1 and 2, due to Mr. Cotran's unreasonable conduct. The costs for Schedule 3 were assessed on a standard basis, as the negotiations for the Modified Undertaking were deemed reasonable.

Ultimately, the Claimants were awarded a total of £21,000 in costs. The Court emphasized the importance of transparency and compliance with court orders in such disputes.

Legal representatives: Jonathan Selby KC (instructed by Withers LLP) for the Claimants, Helen Galley (instructed by Penman Sedgwick) for the Defendant.

Judicial Panel: John Kimbell KC (sitting as a Deputy High Court Judge)

Case Citation Reference: [2024] EWHC 1348 (Comm)