In a judgment handed down today, Mr Justice Nicklin made an order that the claimants  in the case of Baroness Lawrence & Ors v Associated Newspapers pay the costs of the action to be assessed on the indemnity basis ([2026] EWHC 2207 (KB)) [pdf].

The judge also ordered the claimants to make an interim payment on account of costs in the sum of £9,544,355 by 28 August 2026.

The judge made it clear that the indemnity costs order was not based simply on the fact that the claimants had lost at trial.  Rather, he concluded that the litigation had been pursued in a way that took it “well outside the norm” [150]. In particular, the identified a combination of factors including: the exceptional breadth of the pleaded case; the gravity of the allegations advanced against many named individuals; the continued pursuit of serious allegations that lacked an adequate evidential foundation; the failure to withdraw allegations that could no longer properly be maintained; reliance upon the Burrows material; the way in which the “Leveson Lies” allegations were advanced; and the putting of unpleaded allegations to witnesses in cross-examination during the trial [109].

The effect of the indemnity costs order is that the costs budgets previously approved by the Court no longer applies. Associated can now seek to recover costs exceeding its approved budget. That budget was set at £5.2 million, with already incurred costs of £8 million.

The costs must now be assessed by a Costs Judge.   Nicklin J did, however, note that Associated’s claim for incurred costs of £34.5 million was exceptionally high, largely unexplained and unprecedented in the Media and Communications List.  The previously mentioned figure had been £19.8 million. The judge refused to order a limit or cap on the amount that Associated could recover under this costs order.

It has been reported that the claimants have “After the Event Insurance” covering legal costs which is limited to £16 million.

There is a Press Summary of the Judgment here. [pdf].

The Daily Mail has published an article celebrating its victory and including a statement from Associated Newspapers.