[2007] EWCA Civ 464, 18 May 2007. The appellant landlords appealed against a decision to make no order for costs following the dismissal of a claim for the grant of a new tenancy. The respondent tenants held a five-year lease of business premises, and before it expired they indicated that they were considering renewing. The respondent tenants failed to respond to a draft new lease put forward by the appellant landlords, and filed an acknowledgement of service opposing its terms. The amount of interim rent if the tenants vacated was agreed, and before trial the tenants gave notice to the court that they no longer wanted a new lease. At a hearing regarding costs, the judge did not make an order as to costs on the basis that the proceedings had been compromised. "Held": The judge had been wrong to conclude that the case amounted to a compromise, and in particular, a compromise of the tenants' claim for a new lease.