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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/... 📞 Contact TMC Legal 🌐 www.tmclegal.co.uk 📧 office@tmclegal.co.uk 📞 01628 526 236 🔔 SUBSCRIBE for regular updates on costs law, civil litigation, and CPR developments 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 #CostsLaw #PaymentOnAccount #CPR442 #GroupLitigation #BHPDamCollapse #LegalCosts #CivilLitigation #DetailedAssessment #SplitTrialCosts #LitigationFunding #SignUpCosts #IssueBasedCosts #PreJudgmentInterest #UKLaw #CostsLawyer #TMCLegal ⚠️ Disclaimer: Educational purposes only. Not legal advice. © 2026 TMC Legal Limited