What is the estimated total exposure for the claimants if on indemnity basis?

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The Claimants Face Significant Financial Exposure if Indemnity Costs Are Awarded

The claimants in the case against Associated Newspapers Limited (ANL) face a potential financial shortfall of "many millions of pounds" if they are ordered to pay ANL's legal costs on an indemnity basis. This exposure arises because their combined insurance cover of £16.2 million may be insufficient to meet the full extent of ANL's claimed costs, which ANL's lawyers are seeking to have paid on this stricter basis.
Insurance Cover Falls Short of Potential Costs

The seven high-profile claimants, including Prince Harry and Sir Elton John, have secured a total of £16.2 million in insurance to cover legal expenses. However, during a hearing to determine costs, it was argued that this amount could prove inadequate if the court mandates payment on an indemnity basis. This stricter form of cost order typically covers a much larger proportion of the winning party's expenses.
Indemnity Basis Could Exacerbate Shortfall

ANL's legal team advocated for the claimants to bear costs on an indemnity basis, describing the litigation as an "all-out attack" and a "campaign." If this argument prevails, the claimants' representative indicated that their existing insurance would be insufficient to cover their total exposure, potentially leaving them liable for "many millions" beyond their insured limit.
Legal Costs Dispute Continues

The High Court is currently deliberating on the appropriate basis for awarding costs. ANL is seeking a significant portion of its £34 million in legal expenditure from the claimants. The judge's decision on whether to order costs on a standard or indemnity basis will directly impact the final amount the claimants must pay, with the latter carrying the risk of substantial out-of-pocket expenses.

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What is the estimated total exposure for the claimants if on indemnity basis?

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