"THAT PROPORTIONALITY JUDGMENT": 10 KEY POINTS
The post yesterday on the decision of Master Gordon-Saker in BNM -v-MGN Limited  EWHC B13 (Costs) set out the case in some detail. Here are the key points of that decision.
- On an assessment of costs on the standard basis proportionality should prevail over reasonableness.
- The court should first make an assessment of reasonable costs.
- The court should then stand back and consider whether the total figure is proportionate.
- If the total figure is not proportionate the court should make an appropriate reduction.
- The test of proportionality applies to additional liabilities which remain recoverable after 1st April 2013.
- A consequence of the reduction of the base costs to a proportionate figure will be that the success fee, a percentage of the base costs, also reduced.
- When applying the new test of proportionality the court need not consider the amount of any additional liability separately from the base costs.
- It was not intended that the costs should never exceed the sums in issue. The rules do not state that.
- There will be cases in which the costs bear a reasonable relationship to the sums in issue even though they exceed those costs.
- If an insurance premium is reduced on the grounds that it is disproportionate the court should identify the figure allowed.
- Budgets, proportionality & disclosure
- Proportionality, assessment and the costs of budgeting
- Proportionality, bundles & £3 million spent on costs.
- More on summary assessment of costs and proportionality.
- A working example of proportionality in practice.
- Rigorous costs budgeting to ensure proportionality.
- Enterprise, Proportionality, witness statements & unnecessary costs.
- Proportionality and survival for litigators Part 1
- Proportionality and survival for litigators Part 2.
- Proportionality and survival for litigators 3
- Costs, proportionality and getting the budgets right.
- Costs, parties & Proportionality
- An assessment of costs bites the dust.
- Proportionality and costs: it applies to big cases as well.
- What is meant by proportionality?
- Costs budgeting & proportionality when there is £16 million at stake.