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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> 8 Representative Claimants & Ors v MGN Ltd [2016] EWHC 855 (Ch) (19 April 2016) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2016/855.html Cite as: [2016] WLR(D) 195, [2016] EWHC 855 (Ch) |
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CHANCERY DIVISION
Rolls Building, Fetter Lane London EC4A 1NL |
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B e f o r e :
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8 Representative Claimants & Others |
Claimants |
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- and - |
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MGN Limited |
Defendant |
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Mr Gavin Millar QC (instructed by RPC LLP) for the Defendant
Hearing dates: 8th April 2016
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Crown Copyright ©
Mr Justice Mann :
The application and its background
"6. Success fees.
The defendant's primary contention, which it will if necessary seek to advance to the Supreme Court after its determination at first instance, is that the recovery of additional liabilities is unlawful, and would place the United Kingdom in breach of its obligations under the ECHR and the Court in breach of its obligations under the Human Rights Act 1998 to uphold the Convention.
The huge additional expense caused by additional liabilities unlawfully interferes with the defendant's right to free expression under Article 10 of the ECHR and its right of effective access to the Court under article 6 of the ECHR. The ECtHR has already ruled that the regime is incompatible with the Convention: MGN Ltd v United Kingdom [2011] ECHR 66. The United Kingdom was and remains in breach of its treaty obligations by failing to prevent the recovery of additional liabilities from the defendant in respect of this and similar cases. The Court, as a public body, would be in breach of its own Convention obligations to allow the recovery of additional liabilities in this case.
The Court should therefore (i) declare any relevant primary legislation to be incompatible with the Convention; (ii) nullify all secondary legislation; and (iii) in any event refused to award any additional liabilities as a matter of discretion."
"1. A declaration that the Representative Claimants' claims for misuse of private information do not engage Article 10 of the European Convention on Human Rights and as a result they are entitled to the payment of additional liabilities, alternatively
2. A declaration that, on the facts of the Representative Claimants' claims, the payment to them of additional liabilities is compatible with the Defendant's rights under the Article 10 of the European Convention on Human Rights."
The relevant CFA regime
The basis of the challenge
"219. In such circumstances, the Court considers that the requirement that the applicant pay success fees to the claimant was disproportionate having regard to the legitimate aims sought to be achieved and exceeded even the broad margin of appreciation accorded to the Government in such matters.
220. Accordingly, the Court finds that there has been a violation of Art. 10 of the Convention."
"1. Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers. This Article shall not prevent States from requiring the licensing of broadcasting, television or cinema enterprises.
2. The exercise of these freedoms, since it carries with it duties and responsibilities, may be subject to such formalities, conditions, restrictions or penalties as are prescribed by law and are necessary in a democratic society, in the interests of national security, territorial integrity or public safety, for the prevention of disorder or crime, for the protection of health or morals, for the protection of the reputation or rights of others, for preventing the disclosure of information received in confidence, or for maintaining the authority and impartiality of the judiciary."
"19. The challenge is based upon the special position of the media as defendants to actions for defamation and wrongful publication of personal information such as that bought by Ms Campbell against the "Daily Mirror". There is no human right to drive a vehicle upon the road free of the cost of litigation from road accidents. But there is a human right to freedom of expression with which the imposition of an excessive costs burden may interfere. It is true that costs are awarded only against defendants who have been found to have wrongfully published matter which is defamatory or in breach of a claimant's right to the confidentiality of personal information. So it may be said, and Ms Campbell's counsel does say, that there is no harm in inhibiting such publications. But that, it seems to me, is not the point. It is the effect which the threat of heavy liability may have upon the conduct of a newspaper in deciding whether to publish information which ought to be published but which carries a risk of proceedings against it." (My underlining).
"0I-1. Secondly, as in the VgT and TV Vest cases, the interference with the applicant's freedom of expression stemmed not from a decision or exercise of discretion of a court or executive authority, but from a statutory prohibition applicable to all forms of political advertising. Where the interference is the result of an individual decision, the Court's approach has been to examine the necessity and proportionality of the restriction in the particular circumstances of the case. Where, however, as here, the interference springs directly from a statutory provision which prohibits or restricts the exercise of the Convention right, the Court's approach has tended to be different. In such a case, the Court's focus is not on the circumstances of the individual applicant, although he must be affected by the legislation in order to claim to be a victim of its application; it is, instead, primarily on the question whether the legislature itself acted within its margin of appreciation and satisfied the requirements of necessity and proportionality when imposing the prohibition or restriction in question."
The estoppel point
"Similarly, it appears that the MoJ regarded the proposed 10% increase in damages as being a quid pro quo for depriving successful CFA claimants of the ability to recover success fees from the defendant." (Paragraph 27)
"13. It is clear that the CA in Simmons v Castle intended to exclude CFA cases from the operation of the 10% increase; that is the reason for the express terms exclusion of claims governed by s.4(6) of LASPO, namely claims in which a CFA had been entered into before 1 April 2013. It is therefore inconceivable that, had the Court known in July 2012 that CFAs including success fees would continue to be available in publication cases post April 2013, publication cases in which there was a CFA would not also have been excluded from the 10% increase. As the CA put it:
'The second step in ABI's argument is that it would therefore be wrong to permit CFA claimants who are entitled to recover the success fee to benefit from the 10% increase. On the face of it, at any rate, it is hard to challenge that contention: such claimants would have the penny and the bun.'
14. In the present case, Cs are now pressing for the penny and the bun. The submission that they should have both is unprincipled. It is not hard to see why Cs' counsel appeared reluctant to adopt it as part of Cs' case, and made no submissions in support."
"16. In summary, it would be wrong in principle to add 10% on to the damages in this case because:
… (b) Upon a proper consideration of Simmons v Castle , the 10% uplift cannot apply to a privacy case in which Cs are on CFAs and will seek to recover success fees (likely in themselves, based on budgets previously submitted, to run well into seven figures for these representative claims)."
"There is a principle of law of general application that it is not possible to approbate and reprobate. That means you are not entitled to blow hot and cold in the attitude that you adopt. A man cannot adopt two inconsistent attitude towards another: he must elect between them and, having elected to adopt one stance, cannot thereafter be permitted to go back and adopt an inconsistent stance.
To apply that general doctrine to the present case is, I accept, a novel extension. But, in my judgment, the principal is one of general application and if, as I think, justice requires, there is no reason why it should not be applied in the present case."
Conclusion
(a) I determine that, on the basis of binding English authority, the English legislative regime which permits the recovery of the additional liabilities is not incompatible with Article 10 of the Convention.
(b) insofar as that conclusion is or might be wrong, MGN is not entitled to rely on any incompatibility to resist recovery of success fees in relation to the eight cases in which I gave judgment on 21 May 2015.
Note 1 Master Gordon-Saker came to the same conclusion, and followed the same course of following precedent, in BNM v Mirror Group Newspapers [2016] EWHC B1 (Costs).
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