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European Court of Human Rights |
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You are here: BAILII >> Databases >> European Court of Human Rights >> MGN LIMITED v. THE UNITED KINGDOM - 39401/04 [2012] ECHR 993 (12 June 2012) URL: http://www.bailii.org/eu/cases/ECHR/2012/993.html Cite as: [2012] ECHR 993 |
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FOURTH SECTION
CASE OF MGN LIMITED v. THE UNITED KINGDOM
(Application no. 39401/04)
JUDGMENT
STRASBOURG
12 June 2012
This judgment will become final in the circumstances set out in Article 44 § 2 of the Convention. It may be subject to editorial revision.
In the case of MGN Limited v. the United Kingdom,
The European Court of Human Rights (Fourth Section), sitting as a Chamber composed of:
Lech
Garlicki,
President,
David
Thór Björgvinsson,
Nicolas
Bratza,
Päivi
Hirvelä,
Ledi
Bianku,
Nebojša
Vučinić,
Vincent
A. De Gaetano,
judges,
and
Lawrence Early, Section
Registrar,
Having deliberated in private on 22 May 2012,
Delivers the following judgment, which was adopted on that date:
PROCEDURE
THE LAW
“If the Court finds that there has been a violation of the Convention or the Protocols thereto, and if the internal law of the High Contracting Party concerned allows only partial reparation to be made, the Court shall, if necessary, afford just satisfaction to the injured party.”
A. Pecuniary Damage
“On the other hand, ... the total costs billed by the claimant, as regards the two appeals to the House of Lords alone, amounted to GBP 850,000.00, of which GBP 365,077.13 represented success fees. It is true that the applicant, in the end, reached a settlement of the costs of both appeals paying the total sum of GBP 500,000.00 (base costs and success fees). However, given the findings of the House of Lords and of the Judicial Taxing Officers in the second appeal (paragraphs 70 and 80, respectively) as well as in the similar above-cited case of Designer’s Guild Limited, success fees were clearly recoverable against the applicant and, further, at the rates of 95% and 100% in the first appeal and 95% for the solicitors’ costs in the second appeal.”
The Court went on to find therefore that, even if it was not possible to quantify with certainty the precise amounts paid by the applicant which could be attributed to success fees, “it was evident that the negotiated costs settlements reflected the obligation on the applicant to discharge substantial success fees” which domestic law fixed at 95% (for solicitors) and 100% (for counsel) of base costs.
2. Costs of the second appeal to the House of Lords
B. Costs and expenses of the Convention proceedings
25. The Court consider as excessive the claim made (GBP 41,258.00 comprising solicitors’ fees of GBP 32,108.00 and GBP 9150 for counsel) solely for the preparation of the application to this Court on the costs issue. While the issue was of some complexity, it had already been pleaded in some detail in the domestic courts. The claim includes over 100 hours of the time of a partner in the solicitors’ firm billed at GBP 270 per hour as well as work by the assistant solicitors (at GBP 165-180 per hour) and by trainee solicitors. Moreover, a Queen’s Counsel and another barrister also worked on the application, charging GBP 300 and GBP 150 per hour, respectively and spending in the region of 20 hours and 30 hours, respectively.
28. Having regard to the above factors, the Court awards the applicant a total sum of EUR 30,500 in costs and expenses as regards the Convention proceedings about recoverable success fees, exclusive of any tax that may be chargeable to the applicant.
C. Default interest
FOR THESE REASONS, THE COURT UNANIMOUSLY
(a) that the respondent State is to pay the applicant, within three months from the date on which the judgment becomes final in accordance with Article 44 § 2 of the Convention, the following amounts, to be converted into pounds sterling at the rate applicable on the date of settlement:
(i) EUR 97,600 (ninety-seven thousand six hundred euros) in respect of pecuniary damage as regards the success fees paid by it following the first appeal to the House of Lords;
(ii) EUR 158,600 (one hundred and fifty-eight thousand six hundred euros) in respect of pecuniary damage as regards the costs paid by it to the claimant following the second appeal to the House of Lords; and
(iii) EUR 30,500 (thirty thousand five hundred euros), plus any tax that may be chargeable, in respect of costs and expenses;
(b) that from the expiry of the above-mentioned three months until settlement simple interest shall be payable on the above amounts at a rate equal to the marginal lending rate of the European Central Bank during the default period plus three percentage points;
Done in English, and notified in writing on 12 June 2012, pursuant to Rule 77 §§ 2 and 3 of the Rules of Court.
Lawrence
Early Lech Garlicki
Registrar President