“1. The solicitors for the parties listed below shall serve costs budgets in respect of common costs only, … such budgets to include incurred costs up to and including2 October 2015 and thereafter estimated costs up to and including the conclusion of the trial of the lead cases. For the avoidance of doubt, the common costs include the costs relating to the claims of the reserve lead claimants as well as the current lead claimants. 2. The Claimants’ common costs budgets shall consist of a budget from each of the firms of solicitors representing lead claimants listed below, plus a covering schedule aggregating those costs. The solicitors of the relevant claimants are those in the Claimants’ Solicitors Steering Group [‘CSSG’] representing the lead claimants, namely: Thompsons Solicitors LLP Guney, Clarke & Ryan Solicitors Leigh Day Solicitors OH Parsons LLP 3. The Defendants’ common costs budgets shall consist of a budget from each of the firms of solicitors representing the Defendants, namely: Macfarlanes LLP Herbert Smith Freehills LLP Wragge Lawrence Graham & Co Paul Hastings LLP CMS Cameron McKenna Eversheds LLP 4. The costs budgets shall be prepared in accordance with precedent H of the Practice Direction to Part 47, but include in addition: (a) Schedules of hours spent on individual lead cases including reserve cases, and on other common costs work, with brief descriptions of work done to date and anticipated, within each phase. (b) The following additional phases (such phases to be included without prejudice to any party contending at the Costs Management Hearing listed on 19/20 November 2015 …, that such costs shall not be included in the approved budgets): (i) Selection of Lead Cases (ii) Preparation of Generic Witness Statement(s) (regarding the common issues as a whole and not lead cases) (iii) Group Co-ordination costs (iv) Costs Management Hearings (v) Historic and Live Applications. 5. The parties shall meet with a view to agreeing the assumptions of future work, including the trial, … A memorandum of the parties’ assumptions, indicating any areas of agreement or disagreement, shall thereafter be prepared. 6. Upon service of the costs budgets the parties are to meet with a view to agreeing them. Thereafter the Claimants and Defendants shall each prepare a document stating points of agreement and objection in respect of the other’s costs budget…”
“5. These claims relate to the secret vetting of activities carried out by a group of major construction companies over many years, through two organisations: (a) the Services Group of the Economic League (‘SGEL’) between about 1970 and April 1993; and (b) the ‘Consulting Association’ (‘TCA’) from April 1993 until February 2009 when its premises were raided by the Information Commissioner. During their respective periods of operation, each of those organisations maintained a secret manual database of information relating to construction workers who were reported to them by members/subscribers as being troublemakers and/or unsuitable for work in the construction industry. Members/subscribers were (for a fee) able to carry out checks of potential employees/workers to find out whether they were on the list and, if so, whether information was held, in order to decide whether to employ them. It is the Claimants’ case that the list and database functioned as a blacklist.”
“9. Different groups of claimants pursue different causes of action, and different defendants. All pursue claims for unlawful means conspiracy, breach of the Data Protection Act, breach of privacy and misuse of confidential information. The great majority of claimants represented by Thompsons and OH Parson also pursue claims in defamation, based on specific meanings attributed to the database entries in respect of them. Some claimants represented by Leigh Day and OH Parsons also pursue defamation claims in respect of their personal database entries. 10. The defendants pursued for each group of Claimants is also different. The claimants represented by Guney Clark & Ryan pursue only Sir Robert McAlpine Ltd. The claimants represented by Thompsons pursue Defendants represented by Macfarlanes, which include individuals who were employees of those companies and Chairmen of the Consulting Association from time to time, and in the case of four such claimants, members of the AMEC group of companies. The claimants represented by Leigh Day pursue (or have pursued) Defendants represented by Macfarlanes, members of the AMEC group of companies, Cleveland Bridge UK Ltd, BAM Nuttall Ltd and Lend Lease Ltd. The Claimants represented by OH Parsons pursue Defendants represented by Macfarlanes, members of the AMEC group of companies, BAM Nuttall Ltd and Lend Lease Ltd… 11. The remedies sought by the Claimants include damages for loss of earnings, general damages and aggravated damages… 12. However the remedies sought by the Claimants are not confined to damages. They also seek orders for (i) an injunction to restrain the Defendants from publishing and/or causing to be published the defamatory words complained of; (ii) delivery up on oath of all documents concerning the particular claimant and the SGEL, the Consulting Association and/or other vetting information held by the Defendants; and (iii) the identities of the employees or agents of the Defendants who made use of the vetting information, and the uses to which it was put. … 28. Almost all current claimants have provided Provisional Schedules of Loss. The total value of the Provisional Schedules of Loss, leaving out of account general and aggravated damages, and the non-monetary remedies, is£61,257,627.90 .”
“The court may at any time make a ‘costs management order’. Where costs budgets have been filed and exchanged the court will make a costs management order unless it is satisfied that the litigation can be conducted justly and at proportionate cost in accordance with the overriding objective without such an order being made. By a costs management order the court will— (a) record the extent to which the budgets are agreed between the parties; (b) in respect of budgets or parts of budgets which are not agreed, record the court’s approval after making appropriate revisions.”
“There has to be a global approach and an item by item approach. The global approach will indicate whether the total sum claimed is or appears to be disproportionate having particular regard to the considerations which Part 44.5(3) states are relevant. If the costs as a whole are not disproportionate according to that test then all that is normally required is that each item should have been reasonably incurred and the cost for that item should be reasonable. If on the other hand the costs as a whole appear disproportionate then the court will want to be satisfied that the work in relation to each item was necessary and, if necessary, that the cost of the item is reasonable. If, because of lack of planning or due to other causes, the global costs are disproportionately high, then the requirement that the costs should be proportionate means that no more should be payable than would have been payable if the litigation had been conducted in a proportionate manner. This in turn means that reasonable costs will only be recovered for the items which were necessary if the litigation had been conducted in a proportionate manner.”
“Based on their experience costs judges will be well equipped to assess which approach a particular case requires. In a case where proportionality is likely to be an issue, a preliminary judgment as to the proportionality of the costs as a whole must be made at the outset.”
“Where an objection has not been raised in respect of the Defendants’ anticipated costs, it may be assumed the same is agreed for the purposes of the costs management exercise. However the Claimants reserve the right to raise further objections on detailed assessment. The absence of dispute in the table below is therefore subject to the Claimants’ rights on detailed assessment to challenge unreasonable or disproportionate costs.”
“… one must envisage an hypothetical counsel capable of conducting the particular case effectively but unable or unwilling to insist on the particular high fee sometimes demanded by counsel of pre-eminent reputation. Then one must estimate what fee this hypothetical character would be content to take on the brief.”
“In a case such as this where very large amounts of money are at stake, it may be entirely reasonable from the point of view of a party incurring costs to spare no expense that might possibly help to influence the result of the proceedings. It does not follow, however, that such expense should be regarded as reasonably or proportionately incurred or reasonable and proportionate in amount when it comes to determining what costs are recoverable from the other party. What is reasonable and proportionate in that context must be judged objectively. The touchstone is not the amount of costs which it was in a party’s best interests to incur but the lowest amount which it could reasonably have been expected to spend in order to have its case conducted and presented proficiently, having regard to all the relevant circumstances. Expenditure over and above this level should be for a party’s own account and not recoverable from the other party…”