The High Court has allowed an appeal by the Cabinet Office that will allow the government to recover more of taxpayers’ money.
First Deemster Andrew Corlett overturned a decision that limited recoverable legal costs to £110 per hour in a dispute with Baccarat Limited and Morland Enterprises Limited.
He ruled that the Cabinet Office is entitled to recover costs at £300 per hour, aligning with the principle established for in-house government lawyers.
Area Plan
The case stemmed from a challenge to the Area Plan for the East, where the claimants were ordered to pay the Cabinet Office’s costs in 2022.
A costs officer had initially capped the rate at £110, however, Deemster Corlett found this “fell into error,” stating the Attorney General’s Chambers acted as “in-house counsel” for the government.
“The real ratio of Eastwood is that it provides, where government costs apply, a convenient and practical means of assessing the costs of an ‘in-house’ lawyer,” argued the Cabinet Office’s advocate, David Keates.
He warned that limiting costs would create a “windfall to the losing party” and discourage the government from using internal legal resources.
The claimants’ representative, Chris Brooks, had contended that the 2005 Regulations should apply, but the court dismissed this, noting the long-standing practice of awarding costs to salaried government advocates.
Deemster Corlett emphasised the “significant constitutional differences” between the Isle of Man and UK systems.
Earlier Ruling
The High Court previously dismissed challenges by Baccarat Ltd and Morland Enterprises against the Area Plan for the East, which governs housing and land use.
They argued the plan was irrational, citing soil quality at Camlork and procedural flaws over a Ballanard Road link.
However, Deemster Corlett ruled the Cabinet Office and Inspector acted lawfully and rejected their claims.
The plan, adopted in 2020, prioritises brownfield sites and strategic reserves, aligning with the 2016 Strategic Plan.
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