What does MGN v UK mean for the future of success fees?

09 Feb, 2011

The European Court of Human Rights (ECHR) has handed down a judgment that is likely to have a much wider impact on success fees than was anticipated.

The case of MGN Ltd and United Kingdom arose out of the litigation between Naomi Campbell and a newspaper over Naomi’s right to privacy. In the House of Lords MGN argued that it should not be liable to pay the success fee on Naomi’s conditional fee agreement (CFA) (set at 95%) as it was so disproportionate as to amount of breach of the press’ right to freedom of expression under Article 10 of the European Convention of Human Rights.

The ECHR held that requiring MGN to pay the success fee was unlawful, disproportionate and in breach of Article 10.

Eversheds looks at the implications of the ECHR’s decision in light of the Jackson reforms and the future of success fees.

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