BNM v MGN Ltd

BNM v MGN Ltd

The old proportionality test under CPR 44.4(2) and the relevant provisions in the old Costs Practice Direction apply to success fees and ATE insurance premiums in privacy proceedings with pre-commencement funding arrangements, while the new proportionality test applies to base costs. The Senior Costs Judge erred in applying the new test to all costs. The issue of prematurity must be reconsidered, taking into account specific factual matters.

Parties
Appellant: BNM; Respondent: MGN Limited
Jurisdiction
England and Wales
Judgment Date
07 November 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From Senior Courts Costs Office
Outcome
Appeal and cross-appeal allowed; Final Costs Certificate set aside; matter remitted for reconsideration.
Legal Topics
Proportionality Test, Conditional Fee Agreements, ATE Insurance Premiums, Privacy Proceedings, Prematurity of Proceedings
Civil Procedure Costs Proportionality Test Conditional Fee Agreements ATE Insurance Premiums Privacy Proceedings Prematurity of Proceedings

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

BNM

Appellant

MGN Limited

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From Senior Courts Costs Office

Legal Issues

  1. 1 Whether the old or new proportionality test applies to pre-commencement funding arrangements in privacy proceedings
  2. 2 Whether it was reasonable for the claimant to issue proceedings without prior notice

Ratio Decidendi

The old proportionality test under CPR 44.4(2) and the relevant provisions in the old Costs Practice Direction apply to success fees and ATE insurance premiums in privacy proceedings with pre-commencement funding arrangements, while the new proportionality test applies to base costs. The Senior Costs Judge erred in applying the new test to all costs. The issue of prematurity must be reconsidered, taking into account specific factual matters.

Court Disposition

Appeal and cross-appeal allowed; Final Costs Certificate set aside; matter remitted for reconsideration.

Orders

  • Detailed assessment of Claimant’s costs remitted for reconsideration by the Senior Costs Judge.
  • Senior Costs Judge to reconsider reasonableness of issuing proceedings without prior notice, explicitly considering matters at paragraph 91.