Defamation costs cap

Tierney v News Group Newspapers Ltd [2006] EWHC 3275 (QB)

The claimant appealed against a costs-capping order made by the master in her libel action against the respondent newspaper publisher. Following an earlier decision in the proceedings that a costs-capping order was appropriate, the master had set the cap at £92,630 for base costs including counsel’s fees, which was about £100,000 below the estimate provided by the claimant’s solicitor, on the basis that there was no need for leading counsel as the case was a ‘modest’ one. The master allowed £50,755 for solicitors’ costs, which was around 40% less than the estimate, on the basis that the estimate had been overstated. The claimant submitted that, contrary to the master’s assessment, the case was of such importance to the parties concerned that it merited instructing leading counsel for the trial and that the budget should be correspondingly increased to make that possible. The claimant also sought an additional £20,000 by way of solicitors’ costs to cover necessary and proportionate expenditure, contending that there had been no apparent reason to disbelieve the estimate.