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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Henry v British Broadcasting Corporation [2005] EWHC 2503 (QB) (11 November 2005) URL: http://www.bailii.org/ew/cases/EWHC/QB/2005/2503.html Cite as: [2006] 3 Costs LR 412, [2006] 1 All ER 154, [2005] EWHC 2503 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
MARION HENRY |
Claimant |
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- and - |
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BRITISH BROADCASTING CORPORATION |
Defendant |
____________________
(instructed by Carter Ruck) for the Claimant
ANDREW CALDECOTT QC and CATRIN EVANS
(instructed by BBC Litigation) for the Defendant
Hearing dates: 27-28 October 2005
____________________
Crown Copyright ©
Mr Justice Gray:
The question to be decided
The background
"The first inquiry, which was set up by the former Chief Executive in 2003, was undoubtedly a cover up and clearly laid the blame for any irregularities at my foot despite evidence to the contrary. As a result, the senior management team including the Finance Director, Meredith Collins, Linda Marvin and Marion Henry Justice of the Peace, were permitted to continue in post...."
"4.1 The Claimant was guilty of systematically falsifying waiting list figures at Weston General Hospital and had been found to be so by an independent inquiry report;
4.2 The Claimant was guilty of bullying and placing heavyhanded pressure on staff at Weston Hospital under her management in order to perpetrate the waiting list fraud;
4.3 The Claimant had been complicit in a cover up of the waiting list fraud which allowed her to continue in her post when she should have been dismissed; and
4.4 Patients are likely to have suffered as a result of the Claimant's role in perpetrating the waiting list fraud."
The Claimant seeks damages, including aggravated damages, and an injunction.
"(1) the Claimant was part of the senior management team [at the Trust] which was involved in, and pressured staff into, manipulating patient waiting lists in order to meet targets; and
(2) the Claimant was a party to the cover-up of waiting list mismanagement and manipulation at [the Trust]".
The particulars of justification implicate Mr Meredith Collins, the Claimant and Ms Linda Marvin (all of whom had been named by Ms Masson in the course of the press conference) in the mismanagement and manipulation.
The costs capping regime
"One of the principal objects of the Woolf reforms was the control of costs".
Part of the control mechanism for which the CPR provide is the exchange at the allocation stage of costs estimates. The Practice Direction supplementing CPR Part 26 provides that the allocation questionnaire should be in Form N150, which requires estimates to be given of costs incurred by legal representatives to date and of the overall costs. Paragraph 2.1 of CPR 26 PD provides that "attention is drawn to Costs Practice Direction 4.5(1) which requires an estimate of costs to be filed and served when the allocation questionnaire is filed".
"This section sets out certain steps which parties must take in order to keep the parties informed about their potential liability in respect of costs and in order to assist the court to decide what, if any, order to make about costs and about case management".
Paragraph 6.3 provides: "
The court may at any stage in a case order any party to file an estimate of costs and to serve copies of the estimate on all other parties. The court may direct that the estimate be prepared in such a way as to demonstrate the likely effects of giving or not giving a particular case management direction for a split trial or for the trial of a preliminary issue. The court may specify a time limit for filing and serving the estimate. However, if no time limit is specified the estimate should be filed and served within 28 days of the date of the order".
Also worthy of note is paragraph 6.6 which is in these terms:
"On an estimate of the costs of a party the court may have regard to any estimate previously filed by that party, or by another party in the same proceedings. Such an estimate may be taken into account as a factor among others, when assessing the reasonableness of any costs claimed".
"(1) If there is a difference of 20% or more between the base costs claimed by a receiving party on detailed assessment and the costs shown in an estimate of costs filed by that party, the receiving party must provide a statement of the reasons for the difference in the bill of costs.
(2) If a paying party
(a) claims that he reasonably relied on an estimate of costs filed by a receiving party; or
(b) wishes to rely upon the costs shown in the estimate in order to dispute the reasonableness or proportionality of the costs claimed,
the paying party must serve a statement setting out his case in this regard his points of dispute....".
"83. It is, after all, an important feature of the overriding objective that the court must be enabled to save expense and deal with a case in ways which are proportionate to the amount of money involved, the importance of the case, the complexity of the issues and the financial position of each party (CPR r 1.1), and the parties are required to help the court to further the overriding objective: CPR r 1.3".
"99. What is in issue in this case, however, is the appropriateness of arrangements whereby a defendant publisher will be required to pay up to twice the reasonable and proportionate costs of the claimant it he loses or concedes liability, and will almost certainly have to bear his own costs .... if he wins. The obvious unfairness of such a system is bound to have the chilling effect on a newspaper exercising its right to freedom of expression of which [the defendant's solicitor] spoke in his witness statement, and to lead to the danger of selfimposed restraints on publication which he so much feared....
....
101. In my judgment the only way to square the circle is to say that when making any costs-capping order the court should prescribe a total amount of recoverable costs which will be inclusive, so far as a CFA-funded party is concerned, of any additional liability. It cannot be just to submit defendants in these cases, where their right to freedom of expression is at stake, to a costs regime where the costs they have will have to pay if they lose are neither reasonable nor proportionate and they have no reasonable prospect of recovering their reasonable and proportionate costs if they win.
102. If this means, now that the amount at stake in defamation cases has been so greatly reduced, that it will not be open to a CFA-assisted claimant to receive the benefit of an advocate instructed at anything more than a modest fee or to receive the help of a litigation partner in a very expensive firm who is not willing to curtail his fees, then his/her fate will be no different from that of a conventional legally aided litigant in modern times. It is rare these days for such a litigant to be able to secure the services of leading counsel unless the size of the likely award of compensation justifies such an outlay, and defamation litigation does not open the door to awards on that scale today. Similarly, if the introduction of this novel costs-capping regime means that a claimant's lawyers may be reluctant to accept instructions on a CFA basis unless they assess the chances of success as significantly greater than evens (so that the size of the success fee will be to that extent reduced), this in my judgment will be a small price to pay in contrast to the price that is potentially to be paid if the present state of affairs is allowed to continue.
....
104. In this judgment I am not concerned to give more than general guidance as to the procedure that should be followed in future cases to mitigate the evils of which [counsel for the defendant] and his clients were right to complain. The details of what may be appropriate to order in individual cases will have to be worked out on a case by case basis. Nor am I willing to accept [counsel for the defendant]'s invitation that we should make a specific order disallowing costs in relation to any of the acts of extravagance of which he made complaint. This is not the subject matter of this appeal. It will be sufficient only to say that the claimant's lawyers appear to have advanced their client's claim from time to time in a manner that is wholly incompatible with the philosophy if the Civil Procedure Rules, and that I would expect a costs judge to take an axe to certain elements of their charges if the matter ever proceeds to an assessment. If the action goes to trial, the trial judge should express his views on matters of this kind and direct that they be transcribed for the benefit of the costs judge, since the trial judge will be much better able than the costs judge to identify those parts of a case in which costs have been wastefully or extravagantly incurred.
105. There are three main weapons available to a party who is concerned about extravagant conduct by the other side, or the risk of such extravagance. The first is a prospective costs capping order of the type I have discussed in this judgment. The second is a retrospective assessment of costs conducted toughly in accordance with CPR principles. The third is a wasted costs order against the other party's lawyers, but this is not the time or place to discuss the occasions when that would be the appropriate weapon."
"31. The blackmailing effect of such litigation appears to arise from two factors. First, the use of CFAs by impecunious claimants who do not take out ATE insurance. That, of course, is not a feature of the present case. If MGN are right about Ms Campbell's means, she would have been able to pay their costs if she had lost. The second factor is the conduct of the case by the claimant's solicitors in a way which not only runs up substantial costs but requires the defendants to do so as well. Faced with a freespending claimant's solicitor and being at risk not only as to liability but also as to twice the claimant's costs, the defendant is faced with an arms race which makes it particularly unfair for the claimant afterwards to justify his conduct of the litigation on the ground that the defendant's own costs were equally high".
The history of the litigation
The predicament of the BBC
The argument for a cost cap
Conclusion