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Part 2Courts and Justice

Publishers of news-related material: damages and costs

40Awards of costs

(1)This section applies where—

(a)a relevant claim is made against a person (“the defendant”),

(b)the defendant was a relevant publisher at the material time, and

(c)the claim is related to the publication of news-related material.

(2)If the defendant was a member of an approved regulator at the time when the claim was commenced (or was unable to be a member at that time for reasons beyond the defendant’s control or it would have been unreasonable in the circumstances for the defendant to have been a member at that time), the court must not award costs against the defendant unless satisfied that—

(a)the issues raised by the claim could not have been resolved by using an arbitration scheme of the approved regulator, or

(b)it is just and equitable in all the circumstances of the case to award costs against the defendant.

(3)If the defendant was not a member of an approved regulator at the time when the claim was commenced (but would have been able to be a member at that time and it would have been reasonable in the circumstances for the defendant to have been a member at that time), the court must award costs against the defendant unless satisfied that—

(a)the issues raised by the claim could not have been resolved by using an arbitration scheme of the approved regulator (had the defendant been a member), or

(b)it is just and equitable in all the circumstances of the case to make a different award of costs or make no award of costs.

(4)The Secretary of State must take steps to put in place arrangements for protecting the position in costs of parties to relevant claims who have entered into agreements under section 58 of the Courts and Legal Services Act 1990.

(5)This section is not to be read as limiting any power to make rules of court.

(6)This section does not apply until such time as a body is first recognised as an approved regulator.