Legal clash between Earl Spencer’s ex-wife and girlfriend: Privacy, Publicity & Profits
What’s going on – and why It matters
The High Court dispute between Cat Jarman, the current partner of Earl Spencer (younger brother of Diana, Princess of Wales), and his estranged wife, Karen Spencer, centres on deeply personal territory. Jarman alleges that Karen disclosed her multiple sclerosis (MS) diagnosis without permission, prompting her to go public after rumours began circulating. The situation grew more painful when private medical information was allegedly shared with staff at Althorp, her personal trainer, and even school teacher s- none of whom were meant to know.
Describing the ordeal as “utterly sickening,” Jarman told the Daily Mail she’d kept her MS diagnosis hidden for six years – not even her partner Earl Spencer knew until she was forced into the open. In court, Karen’s team argues her sharing of the information was justified – claiming it was part of her emotional processing of discovering her husband’s affair, which she learnt of in a distressing fashion.
With such high emotional stakes, the legal wrangling isn’t just about reputation or privacy- it’s also about who foots the million-pound bill.
Legal budgets: a million here, a million there
The court has now approved future costs budgets for both sides:
- Claimant (Cat Jarman): £1,217,880
- Defendant (Karen Spencer): £1,000,057
These figures represent anticipated legal costs from here on out. Costs incurred before the budget order are handled separately, assessed on a case-by-case basis for reasonableness and proportionality.
Why cost budgeting really matters
The Civil Procedure Rules require multi-track litigation to go through a cost budgeting process. Once budgets are approved:
- They’re not absolute caps – spending more is possible, but recoverability hinges on showing a “good reason” – a difficult threshold to meet
- Past vs. future costs are treated differently – pre-budget costs are judged on their own merits- not capped by the approved figures.
- Costs are separated by phase – disclosure, witness statements, trial prep – each must stand alone. Overspending in one area can’t be offset by underspend in another.
Drafting strategies: planning pays off
Here’s where expert cost drafting plays a pivotal role. As Ben Hodgson of Your Legal Costs explains:
“The way costs are apportioned between phases can make a significant difference to what is ultimately recovered. Careful drafting at the Billing stage and appropriate foresight at the budgeting stage are essential. Thoughtfully allocating overlapping work into the appropriate phases can minimise overspend (which will usually be irrecoverable). These kind of prudent decisions are key in cases where reputational and emotional dynamics can result in costs escalating rapidly.”
Bigger picture: emotional turmoil, legal gamble
This dispute is more than celebrity gossip – it demonstrates how private crises can turn into multi-million-pound legal dramas. With an eye-watering £2.2 million plus on the line for future costs, the actual financial exposure will likely climb even higher once incurred costs are added.
For legal professionals, it serves as a case study in:
- The importance of early and accurate budgeting
- Ongoing monitoring of spend against phase limits
- The value of specialist cost drafting to retain recoverability
How Your Legal Costs can help
At Your Legal Costs, we guide law firms and clients through every step – from drafting tight, strategic cost budgets, to managing phase-by-phase spend, to preparing detailed bills subject to cost-managed assessment. We help turn litigation from a costly risk into a controlled process.
Need help crafting or managing your budgets, or navigating cost challenges in sensitive disputes like this? We’re here to support you – please contact us via E: management@yourlegalcosts.co.uk or T: 0151 449 0005
