Last updateTue, 24 Feb 2015 5pm

COSTS: Get a grip – keeping a sense of proportion

25 November 2011  

Melanie Hart reviews the impact of the Trafigura case

On 12 October 2011 the Court of Appeal delivered its judgment in Motto & ors v Ltd & anor (Rev 3) [2011] (Trafigura). Addressing various important issues relating to costs, the court clarified the test of proportionality and ruled that the costs of investigating and entering into CFAs and ATE policies are not recoverable inter parties. In the leading judgment, Master of the Rolls Lord Neuberger recognised that a consistent approach ‘in the vexed area of legal costs’ is important and that the law must be ‘simple and clear’.

Additional Info

  • Case(s) Referenced:

    Giambrone & ors v JMC Holidays Ltd [2002] EWHC 2932 (QB)

    Home Office v Lownds [2002] EWCA Civ 365

    Motto & ors v Trafigura Ltd & anor (Rev 3) [2011] EWCA Civ 1150