Earlier this year the UK government amended the Civil Procedure Rules to allow caps on maximum costs liability in Aarhus Convention claims to be varied or removed by courts, prompting environmental groups to challenge the changes.
Out-Law named the Royal Society for the Protection of Birds (RSPB), Friends of the Earth, and ClientEarth as the non-governmental organisations (NGOs) who brought the judicial review case against the Ministry of Justice (MoJ). The High Court has released its judgment.
First, the NGOs argued that the variation of the costs cap is a breach of European Union law. While the High Court did not agree, it said other UK rules would have to apply – limiting the circumstances allowing the variation.
Second, according to the judicial review application, the reforms did not provide for private hearings in cases wherein there’s a possible discussion involving financial – thus confidential – details of a claimant or supporter. The court concurred that such information must be protected through private hearings.
Third, the groups wanted a declaration that a claimant’s costs of bringing a case should be part of its financial resources assessment. While the MoJ accepted this point as valid, the court said a declaration was not necessary – claimants’ costs will be taken into account.
Previously, the limits for cost liabilities for losing claimants were £5,000 for individuals and £10,000 for companies. As for costs recoverable from a losing defendant, the cap was £35,000.
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