The Duke of Sussex ANL lawsuit is heading into a fresh costs fight after the Daily Mail publisher’s case against Prince Harry and other claimants moved toward a specialist assessment. The unsuccessful claimants, including Sir Elton John and Baroness Lawrence, may be liable for Associated Newspapers’ legal expenses, with a judge in the Senior Courts Costs Office expected to scrutinise the bill unless there is a settlement.
In January 2025, the High Court described the claimants’ £39 million spending plan as grossly excessive and cut it to £4.1 million for the claimants and £4.4 million for the defendant. The claimants had budgeted £18.7 million, while Associated Newspapers had estimated £19.8 million, setting up a costs dispute that now reaches beyond the outcome of the main case.
High Court budgets and liability
The costs process now matters because the losing side may have to pay far more than the ordinary level of recovery. In typical litigation, costs are awarded on a standard basis, and winning parties usually recover about 70% of their costs. Associated Newspapers is likely to pursue its costs on an indemnity basis, which can allow recovery of 85-90% of expenses if the court accepts that the other side acted outside accepted litigation norms.
A ruling in late 2025 established that the claimants would be jointly liable for any adverse common costs should they lose. That leaves Prince Harry, Sir Elton John and Baroness Lawrence exposed to a detailed accounting exercise rather than a simple win-or-lose figure, with a specialist judge expected to examine each side’s spending unless the parties settle first.
Association of Costs Lawyers view
David Bailey-Vella of the Association of Costs Lawyers said the costs resolution will be “just as hard fought as the main claim”. He said the costs battle could take an extended time, and compared the timeline to the Wagatha Christie libel case. The Association of Costs Lawyers says the case underscores the importance of transparency and the role of Costs Lawyers in ensuring that legal costs are fairly assessed and recovered.
The financial complication is that the claimants had secured legal expenses insurance to reduce their risk, but concerns have emerged over potential claims that they breached the insurance terms. That issue could shape how much of Associated Newspapers’ legal expenses the unsuccessful claimants must bear, and it also helps explain why the Daily Mail will request an interim payment on account of costs before the final figure is settled.
Senior Courts Costs Office
The dispute now sits with the mechanics of assessment: if the parties do not settle, a specialist judge in the Senior Courts Costs Office will decide what is recoverable and on what basis. For Prince Harry, Sir Elton John and Baroness Lawrence, the immediate question is not the main claim itself but how much of the other side’s bill the court may ultimately require them to cover.
