In a stunning decision, the Supreme Court has given an indication that the pre-Jackson costs regime may breach the rights of paying parties under the European Convention of Human Rights. The issue has the potential to affect all agreements signed under the pre-April 2013 costs regime.
The question arose because the respondents in Coventry and others v Lawrence and other (No 2) [2014] UKSC 46, who were ultimately unsuccessful in defending the claimants’ action for nuisance, had been ordered at first instance to pay 60% of the claimants’ costs. The costs amounted to around £1,067,000 – £398,000 in base costs, £319,000 in uplift, and £350,000 for the ATE insurance premium.
