Liam Holden: Family denied £120,000 in costs

Dismissing the family’s challenge, Lady Chief Justice Dame Siobhan Keegan confirmed the department’s position to be legally correct.

She stressed that the issue centred on the legal authority to pay out over the £1m cap.

“If that circumstance arises the legislation does clearly prevent any further payment,” the Lady Chief Justice held.

The family’s lawyers claimed it was unlikely that Parliament intended compensation to include the associated costs of obtaining that outcome.

Dame Siobhan suggested the authorities could still make the payment as a “gesture of goodwill”.

She said, “The respondent could as an expression of goodwill pay the costs in this case given the tenable view that the taxation process was entered into with the expectation that costs would follow.”

“This course would set no precedent given the unique circumstances of this case”, she added.