Citation Plc –v- Ellis Whittam Ltd  EWHC 764 (QB)
C had brought proceedings for slander and malicious falsehood against D. D did not accept liability but, prior to proceedings, offered an undertaking not to repeat the words complained of, albeit not in an unqualified form acceptable to C. C therefore issued proceedings seeking a permanent injunction. The proceedings were struck out on the basis that C had achieved all which it could achieve prior to issue. D sought an order for costs in its favour. C argued that it should not be penalised for being reasonable and not taking forward a claim for damages. In the absence of a finding or admission of liability, the Court could make no order adverse to D. C was ordered to pay D’s costs from the service of the claim form. Prior to that date the Court made no order as to costs on the basis that had C not commenced proceedings, D could not have recovered costs for that period and the commencement of proceedings should not entitle D to costs to which it would otherwise not have received.