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10 November 2017
Issue: 7769 / Categories: Legal News , Profession
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Testing proportionality

A senior costs judge was wrong to apply the new proportionality test to success fees and after the event (ATE) insurance premiums, the Court of Appeal has unanimously held in a privacy case brought by a primary school teacher whose relationship with a premiership footballer was exposed by the Sunday People newspaper.

In BNM v MGN [2017] EWCA Civ 1767, MGN argued that the new proportionality test applied as success fees and ATE premiums could be regarded as ‘fees’ and ‘expenses’, and therefore fell within the definition of costs.

However, the Court of Appeal held that the senior costs judge should have used the proportionality test under the old Civil Procedure Rules.

A statement from Temple Garden Chambers, where barristers represented BNM, said: ‘The Court of Appeal held that the senior costs judge had not sufficiently made clear what, if any, weight he had attached to certain criteria relevant to this point and thus directed him to reconsider the issue in the light of their further guidance.’

NLJ colmnist Dominic Regan said: ‘It was hoped that general guidance upon proportionality would be forthcoming. It wasn’t. Very annoying and disappointing. A cross-appeal was allowed; had the claimant issued proceedings unnecessarily? Bizarrely, Irwin LJ in the last sentence of the judgment stated that there was more than one answer to that question.’

Francis Kendall, vice-chairman of the Association of Costs Lawyers, said: ‘It is disappointing that the court chose not to give any guidance on the application of the new proportionality test, but we understand that three conjoined cases are set to come before the court shortly that will hopefully be a vehicle for such guidance.

‘The disputes the continuing uncertainty is causing are not helpful and we urge the Court of Appeal to give the profession the strong steer it needs.’ 

 
Issue: 7769 / Categories: Legal News , Profession
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MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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