TMC LEGAL | MUNICÍPIO DE MARIANA V BHP GROUP (UK) LTD & BHP GROUP LIMITED [2026] EWHC 73 (TCC)

Описание: In determining a £43 million payment on account from a £189 million costs claim, the court adopted a cautious approach where costs evidence was limited, stripping out collateral sign-up costs and applying a 10% reduction for issues on which the successful party had failed. | Município de Mariana v BHP Group [2026] EWHC 73 (TCC) | £43m Payment On Account From £189m Costs Claim

Mrs Justice O'Farrell DBE determines a payment on account in high-value group litigation concerning the Fundão dam collapse. The court adopts a cautious approach where costs evidence is limited, strips out collateral sign-up costs, and applies a 10% reduction for unsuccessful issues.

🔑 Key Points
• £43 million payment on account ordered from £189 million costs claim
• Sign-up and collateral costs (~£117 million) excluded from Stage 1 Trial costs
• 10% reduction for unsuccessful issues including Article 927 and Corporate Law claims
• Pre-judgment interest at 1% above base rate from 1 August 2023
• Permission to appeal refused

📋 Case Summary
Case: Município de Mariana v BHP Group [2026] EWHC 73 (TCC)
Court: Technology and Construction Court
Judge: Mrs Justice O'Farrell DBE

⚖️ Why This Matters
Essential guidance for costs practitioners dealing with high-value group litigation where costs budgeting has not taken place. The court's approach to separating sign-up costs from recoverable trial costs under Motto v Trafigura and Weaver v British Airways has significant implications for funded litigation.

🎯 What The Court Decided
1. Claimants entitled to immediate costs order for Stage 1 Trial
2. Costs limited to those "of and incidental to" the Stage 1 Trial only
3. Sign-up costs and call centre operations not recoverable as trial costs
4. 10% reduction for discrete unsuccessful issues
5. Cautious 60% approach to payment on account where evidence lacks detail
6. Pre-judgment interest justified despite contingent funding liability

📚 Topics Covered
• Payment on account under CPR 44.2(8)
• Split trial costs orders
• Issue-based percentage reductions
• Sign-up and collateral costs in group litigation
• Pre-judgment interest on costs

👨‍⚖️ Judge: Mrs Justice O'Farrell DBE

💼 Useful For
Costs Lawyers | Costs Draftsmen | Solicitors | Litigation Funders | Group Litigation Practitioners

🔗 Links
📖 Blog: https://www.tmclegal.co.uk/payment-on...
⚖️ BAILII: https://www.bailii.org/ew/cases/EWHC/...

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Related Cases
• Weill v Mean Fiddler Holdings Ltd [2003] EWCA Civ 1058
• Langer v McKeown [2021] EWCA Civ 1792
• Excalibur Ventures v Texas Keystone [2015] EWHC 566 (Comm)
• Motto v Trafigura Ltd [2011] EWCA Civ 1150
• Weaver v British Airways plc [2021] EWHC 217

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⚠️ Disclaimer: Educational purposes only. Not legal advice.

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