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HAMILTON v FAYED (SIR ROBERT MCALPINE LTD AND OTHERS, RESPONDENTS AS TO COSTS)

28 June 2002

Claimant unsuccessful in libel action ordered to pay defendant's costs: defendant seeking costs orders against persons funding action: whether pure funders liable in costs Appeal from Morland J THE CLAIMANT brought an unsuccessful libel action against the defendant and a costs order was made against him. The defendant applied under s 51 of the Supreme Court Act 1981 to recover his costs from persons who had contributed funds for the action on the basis that if successful the sums would be returned, otherwise not. For the purposes of the applications the funders were joined as respondents. The judge refused the applications. The defendant appealed. SIMON BROWN LJ said that the judge’s view was that it would only rarely or very rarely be just and reasonable to make an order against a pure funder and that some exceptional further feature was required to warrant a s 51 order. Pure funders were those with no personal interest in the litigation, who did not stan...

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