18 May 2004
Court of Appeal gives no-win no-fee guidance
Cost-capping sanctioned in CFA cases
Prospective cost capping procedure approved in defamation claims initiated under a CFA without ATE insurance cover
The Court of Appeal dismissed the Telegraph’s appeal which asked the court to make ‘dynamic case management’ orders to limit the legal costs being incurred on behalf of the Claimant, whose libel claim is being funded under a CFA without "after the event" insurance. The Court did, however, go on to lay down important guidance to ensure that in the future costs incurred in defamation claims pursued on this basis remained reasonable, proportionate and article 10 compliant. The guidance includes approval of a new procedure whereby costs in CFA cases are capped by the Master at the allocation stage.
In the mean time, in relation to other aspect of the Telegraph’s appeal, which was concerned with whether the Telegraph was entitled to justify the meaning that the ‘police suspected the claimant of involvement in terror-related activities’ (which had been struck out by Eady J), the Court of Appeal permitted the Telegraph to apply to the court below to reinstate that meaning and the particulars of justification which supported it in a slightly modified form.
Godwin Busuttil represented Telegraph Group Limited on the appeal as junior counsel.