Overview

The European Court has handed down judgment in a case examining the operation of CFAs and recovery of success fees in the UK. As a result of the court’s findings, the UK Government has been ordered to repay to MGN, the success fee it was ordered to pay Naomi Campbell in her successful privacy claim. This decision will no doubt speed up the abolition of Claimants recovering success fee if indeed it has not already put paid to it. A more detailed summary is attached.

While essentially a consideration of the conflict between Article 6, the right to a fair trial, as opposed to Article 10, the right to freedom of expression, the court did consider the conflict between the claimant’s Article 6 right and the defendant’s Article 6 right and considered success fees had swung the balance too far in favour of the claimant.

Further, the CFA scheme was put in place to comply with Article 6 and ensure access to justice for those who could not afford it. It was not, said the court, designed for the “wealthy” such as Naomi Campbell and this may lead to challenges to the recovery of success fees from the other side in respect of CFAs and CCFAs entered into with corporate clients. Eversheds has more details.