Costs-capping – 2

Henry v BBC QBD LSG 5 January

In proceedings funded under a conditional fee agreement supported by Legal Costs Insurance, the claimant sought libel damages. Shortly before the trial, the claimant’s solicitors served the BBC with a revised costs estimate in the region of £1.6m including the success fee. The BBC’s predicament was that if it lost it would be liable for these costs, while if it succeeded there was doubt whether it would be able to claim costs under the LCI policy, which in any event provided totally inadequate cover and the defendant did not have sufficient assets to cover the costs. Although it was made at a late stage, the BBC sought a costs-capping order.