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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

London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

Foot Anstey—five promotions

Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
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