LM1 Limited v Seacroft Film Investments Limited

Facts

LM1 Limited and Seacroft Film Investments Limited settled a County Court at Leeds claim (J00LS572), in which Seacroft was claimant and LM1 defendant and counterclaimant, by a Settlement Agreement dated 28 February 2024 annexed to a Tomlin Order. Clause 2 required Seacroft to pay LM1 a Settlement Sum of £30,000 and a Costs Contribution of £20,000, both inclusive of VAT, plus LM1's costs of the counterclaim to be assessed on the standard basis if not agreed, less the Costs Contribution. Seacroft paid both sums in March 2024. LM1 served a bill of costs which, at a detailed assessment on 2 December 2025 before District Judge Josling, was struck out on Seacroft's Medway Oil argument, LM1 being permitted to redraw its bill and recommence assessment under CPR 47 and ordered to pay £20,449.56. Seacroft's solicitors then demanded repayment of the £20,000 Costs Contribution and, on 23 January 2026, served a statutory demand. LM1 applied on 12 February 2026 to restrain presentation of a winding-up petition. Before the adjourned hearing on 12 May 2026 Seacroft accepted, following service of a witness statement exhibiting a redrawn bill, that there was a substantial dispute about the debt, leaving costs as the only issue.