BNM v MGN

Case Alert - [2017] EWCA Civ 1767

Assessment of costs for CFA and ATE policy entered into before 1 April 2013

The claimant entered into a conditional fee arrangement and bought an ATE insurance policy prior to 1 April 2013 (and accordingly was entitled to recover the success fee and premium). The short point in this case was whether the success fee and premium were subject to the old or new proportionality rules under the assessment of costs on the standard basis. Under the new test, proportionality has assumed greater importance and so costs that are disproportionate in amount may be disallowed or reduced, even if they were reasonably or necessarily incurred.

The Court of Appeal has now held that the assessment should have been conducted on the footing that the old test applied.