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KASSAB MEDIA FZ v SKY NEWS ARABIA FZ-LLC [2018] DIFC CA 010 — Final costs assessment following Court of Appeal judgment (29 November 2018)

The dispute between Kassab Media FZ and Sky News Arabia FZ-LLC culminated in a detailed costs assessment process overseen by the DIFC Courts. Following the Court of Appeal’s judgment delivered on 12 July 2017, the parties entered into a secondary phase of litigation focused on the recovery of legal…

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This Final Costs Certificate quantifies the financial liability of Kassab Media FZ following the conclusion of appellate proceedings against Sky News Arabia FZ-LLC, establishing the definitive recovery of legal expenditures incurred during both the main appeal and the subsequent assessment process.

What was the total financial liability imposed on Kassab Media FZ in the final costs assessment of CA-010-2016?

The dispute between Kassab Media FZ and Sky News Arabia FZ-LLC culminated in a detailed costs assessment process overseen by the DIFC Courts. Following the Court of Appeal’s judgment delivered on 12 July 2017, the parties entered into a secondary phase of litigation focused on the recovery of legal costs. The Respondent, Sky News Arabia, sought recovery for both the primary appellate proceedings and the costs incurred during the assessment process itself.

The Deputy Registrar determined that Kassab Media FZ was liable for a total sum of USD 51,796.16. This figure was bifurcated into USD 38,722.50 for the main CA-010-2016 proceedings and USD 13,073.66 for the costs assessment proceedings. The order mandates strict compliance regarding the timeline for payment:

The Appellant shall pay the Respondent the sums ordered in paragraph 1 of this Costs Certificate within 21 days from the date of the Costs Certificate.

This assessment serves as the final quantification of the debt owed by the Appellant to the Respondent, effectively closing the financial chapter of this specific appellate dispute. Further details regarding the breakdown of these costs can be found at the official DIFC Courts portal: https://www.difccourts.ae/rules-decisions/judgments-orders/court-appeal/ca-0102016-kassab-media-fz-llc-v-sky-news-arabia-fz-llc

Which judicial officer presided over the detailed costs assessment hearing for CA-010-2016 on 27 November 2018?

The detailed costs assessment hearing was conducted by Deputy Registrar Nour Hineidi Kirk. The hearing took place on 27 November 2018 within the DIFC Court of Appeal division. The Deputy Registrar’s role was to adjudicate the disputes arising from the Statement of Costs filed by Sky News Arabia and the subsequent Points of Dispute filed by Kassab Media FZ.

How did the parties frame their arguments regarding the recoverability of costs in CA-010-2016?

The procedural history of the costs assessment involved a series of filings that defined the scope of the dispute. Sky News Arabia, acting as the Costs Claimant, initiated the process by filing a Statement of Costs on 19 September 2016, followed by a Notice of Commencement of Assessment of Bill of Costs on 5 July 2018. Their position was that the costs incurred were reasonable and proportionate to the complexity of the appeal.

Kassab Media FZ, as the Costs Respondent, challenged these figures by filing Points of Dispute on 26 July 2018. This forced the Respondent to file a Reply to the Appellant's Points of Dispute on 16 August 2018, alongside a supplemental Statement of Costs specifically addressing the costs of the assessment process itself, which was filed on 27 September 2018. The arguments centered on the necessity and quantum of the legal fees claimed, requiring the Deputy Registrar to review the submissions and hear oral arguments from counsel representing both entities before reaching a final determination.

What was the precise procedural question the Deputy Registrar had to resolve regarding the assessment of costs in CA-010-2016?

The core legal question before the Deputy Registrar was the determination of the "reasonable and proportionate" costs to be awarded to the successful party under the Rules of the DIFC Courts (RDC). Specifically, the court had to reconcile the Respondent's claimed legal expenditures against the Appellant's formal Points of Dispute. The court was tasked with deciding whether the costs claimed for the main appeal (CA-010-2016) and the costs incurred during the assessment hearing itself met the threshold for recovery under the RDC, and if not, what adjustments were required to ensure the final certificate reflected a fair and accurate assessment of the work performed.

How did Deputy Registrar Nour Hineidi Kirk apply the RDC framework to determine the final costs in Kassab Media FZ v Sky News Arabia FZ-LLC?

The Deputy Registrar’s reasoning was rooted in a systematic review of the procedural history and the specific filings submitted by the parties. By reviewing the Statement of Costs, the Points of Dispute, and the subsequent Reply, the court applied the RDC standards for cost recovery. The process involved a detailed examination of the legal work performed during the main appeal and the additional work necessitated by the assessment proceedings.

The Deputy Registrar ensured that the final certificate was consistent with the Court of Appeal’s earlier judgment of 12 July 2017. By hearing counsel for both parties on 27 November 2018, the court was able to weigh the arguments regarding the reasonableness of the fees. The final order was issued to ensure that the Respondent was appropriately compensated for the costs of the main proceedings and the costs of the assessment itself:

The Appellant shall pay the Respondent the sums ordered in paragraph 1 of this Costs Certificate within 21 days from the date of the Costs Certificate.

This structured approach ensured that the final award was not merely a rubber-stamping of the Respondent's initial claim, but a judicial determination based on the specific challenges raised by the Appellant.

Which specific RDC rules and procedural instruments governed the assessment in CA-010-2016?

The assessment was governed by the Rules of the DIFC Courts (RDC), which provide the framework for the assessment of costs. The Deputy Registrar specifically referenced the RDC in the preamble of the Final Costs Certificate. The procedural instruments utilized included the Statement of Costs (filed 19 September 2016), the Notice of Commencement of Assessment of Bill of Costs (filed 5 July 2018), the Points of Dispute (filed 26 July 2018), and the Reply to the Points of Dispute (filed 16 August 2018). These documents collectively formed the evidentiary basis upon which the Deputy Registrar exercised her discretion to quantify the final award.

How did the Court of Appeal judgment of 12 July 2017 influence the subsequent costs assessment?

The judgment of 12 July 2017 served as the foundational authority for the costs assessment. In the DIFC system, the right to recover costs is typically established by the substantive judgment, which determines the successful party. The Deputy Registrar’s role in the 29 November 2018 order was to give effect to the Court of Appeal’s decision by quantifying the specific monetary value of those costs. The judgment acted as the "trigger" for the assessment process, ensuring that the costs awarded were strictly limited to those arising from the CA-010-2016 proceedings and the subsequent assessment process, as authorized by the court's earlier ruling.

What was the final disposition and the specific monetary relief ordered by the Deputy Registrar?

The Deputy Registrar issued a Final Costs Certificate on 29 November 2018. The disposition was a clear order for payment, requiring Kassab Media FZ to pay Sky News Arabia FZ-LLC a total of USD 51,796.16. This total was comprised of two distinct components: USD 38,722.50 for the main CA-010-2016 proceedings and USD 13,073.66 for the costs assessment proceedings. The order mandated that these sums be paid within 21 days of the date of the certificate.

What are the practical implications for litigants regarding the 21-day payment window in DIFC costs assessments?

This case reinforces the strict nature of DIFC Court orders regarding the payment of assessed costs. Litigants must anticipate that once a Final Costs Certificate is issued, the 21-day window for payment is a firm deadline. Failure to comply with this timeline can lead to further enforcement proceedings. For practitioners, this highlights the importance of ensuring that Points of Dispute are well-founded and supported by evidence, as the court will move swiftly to finalize the debt once the assessment hearing is concluded. The case serves as a reminder that the costs of the assessment process itself are recoverable, which should be a significant consideration for parties deciding whether to contest a bill of costs.

Where can I read the full judgment in Kassab Media FZ v Sky News Arabia FZ-LLC [2018] DIFC CA 010?

The full text of the Final Costs Certificate can be accessed via the DIFC Courts website: https://www.difccourts.ae/rules-decisions/judgments-orders/court-appeal/ca-0102016-kassab-media-fz-llc-v-sky-news-arabia-fz-llc. The document is also available via the CDN link: https://littdb.sfo2.cdn.digitaloceanspaces.com/litt/AE/DIFC/judgments/court-appeal/DIFC_COA_CA_010_2016_Kassab_Media_Fz_LLC_v_Sky_News_Arabia_FZ-LLC_20181129.txt

Cases referred to in this judgment:

Case Citation How used
Kassab Media FZ v Sky News Arabia FZ-LLC CA 010/2016 Main proceedings for which costs were assessed

Legislation referenced:

  • Rules of the DIFC Courts (RDC)
Written by Sushant Shukla
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