Court of Appeal
Rex (CR) v Director of Legal Aid Casework and others
[2023] EWCA Civ 717
2023 May 25; June 23
Bean, Nicola Davies, Warby LJJ
CostsOrder for costsCosts capping orderClaimant refused legal aid to challenge by judicial review decision of Legal Aid Director to refuse funding for tribunal representationReciprocal cost capping order made in connection with judicial review proceedingsDirector subsequently granting claimant’s application for legal aidClaimant applying to set aside order ab initioDeputy judge varying order prospectively to apply to costs incurred before service of orderProper approach to be applied Criminal Justice and Courts Act 2015 (c 2), ss 88, 89 CPR r 46.19

The claimant TI, the child’s litigation friend and prospective adoptive mother, applied for funding for representation in the Special Educational Needs and Disability Tribunal. The Director of Legal Aid Casework refused the application on the basis that she was acting in a parental rather than representative capacity. TI applied for legal aid to challenge that decision by judicial review. The Legal Aid Director refused to grant legal aid having assessed that TI’s prospects of success were poor. TI was then granted (i) permission to issue proceedings for judicial review of the funding decision and (ii) a costs capping order (“CCO”) pursuant to sections 88 and 89 of the Criminal Justice and Courts Act 2015, including the mandatory requirements of section 88(6), and section VI of CPR Pt 46 capping the total costs liability of both parties. The Director thereafter granted a substantive application by TI for legal aid for the judicial review proceedings, which included that the funding be backdated to the date of her original funding application. TI applied inter alia under CPR r 46.19 to set aside the CCO ab initio. The deputy judge varied the CCO under CPR r 46.19 so as to apply only to costs incurred before the date of service of the order having accepted that the CCO should be varied prospectively but not retrospectively.

On TI’s appeal—

Held, appeal dismissed. The intention of Parliament and the public policy underpinning the introduction of the costs capping regime was the promotion of access to justice for claimants in judicial review proceedings which were “public interest proceedings” within the meaning of section 88 of the Criminal Justice and Courts Act 2015, and section 89(2) recognised the need to ensure reciprocity for defendants on their liability to pay the claimant’s costs. Sections 88 and 89 of the Act were intended to provide claimants and defendants with legal certainty as to the extent of their costs liability. The circumstances in which a CCO could be varied or revoked under CPR r 46.19 were fact specific. While there was no jurisdictional bar to the court making an order to retrospectively vary a CCO, such a variation would only be appropriate in exceptional circumstances. That approach was wholly consistent with the purposes behind the CCO legislation. The original CCO was a valid order made in accordance with the relevant provisions, which included the mandatory criteria in section 88(6) of the Act. While there was a subsequent change of circumstances when TI was granted legal aid for the judicial review proceedings, the fact of that change did not of itself invalidate the original order. There is nothing in section 88(6) which provided a basis to permitting revocation or retrospective variation of the CCO if the mandatory criteria were no longer satisfied. An application to set aside or vary a CCO had to be assessed upon its own facts and its merits. The appellate court would be slow to interfere with the exercise by a judge of a discretion particularly in respect of costs where the discretion was wide. The purpose of a CCO was not to ensure any particular level of remuneration for a claimant’s legal representatives. The application to set aside the CCO in the present case sought an order permitting the recovery at commercial rates and without any restrictions of costs already incurred and previously the subject of the CCO. Such an order would deprive the Director of the protection of the reciprocal cap which the Act required as part of the balance for TI obtaining a CCO. Such an order would undermine the concept of legal certainty which was an intention of the CCO regime and its practical effect would be to retroactively expose the Director to a significantly greater adverse costs liability in respect of costs already incurred and currently covered by the CCO. The deputy judge applied an approach which fairly reflected the balancing of the interests between TI and the Director of Legal Aid. There were no grounds to interfere with the order of the deputy judge varying the CCO. Accordingly, that order would stand unaltered (paras 36–42, 45, 46, 47, 48, 49, 50).

In re appeals by Governing Body of JFS [2009] 1 WLR 2353, para 22 per Lord Hope of Craighead DPSC, R (Elan-Cane) v Secretary of State for the Home Department [2020] QB 929, para 148 per Henderson LJ, Western Sahara Campaign UK v Secretary of State for International Trade [2021] EWHC 1756 (Admin), para 43 and Anti-Trafficking and Labour Exploitation Unit v Secretary of State for Justice [2022] ACD 115, paras 50–51 considered.

Decision of Judge Ockleton sitting as deputy judge of the High Court (unreported) 13 April 2022 affirmed.

Amanda Weston KC, Oliver Persey and Isaac Ricca-Richardson (instructed by Public Law Project) for the claimant.

Malcolm Birdling and Sophie Bird (instructed by the Treasury Solicitor) for the Director of Legal Aid Casework.

Scott McGlinchey, Barrister

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