Case No. FD20F00034-and-FD19P00380

costs. HRH seeks £1,859,992 pa whereas HH responds with a figure of £698,500 pa. The first item is [item 1]. The claim is for £500,000 pa as against £250,000 pa. I have decided that the correct figure is £300,000 pa. I find it difficult to see how more than this could actually be spent. I have permitted the claim for [item 2] as I cannot see that HRH can be expected to go to the shops. Equally, it would be wrong for it all to be done online. I have allowed £30,000 pa. I have then allocated items to the various other heads as I consider appropriate. I cannot see that [item 3] could possibly amount to £133,000 pa. I have decided £50,000 pa should cover it. I accept that the children have been used to presentations and that the cost does seem extremely high, perhaps when the agents of [those] involved realise who is trying to book them. I have included £250,000 pa against the very high figure of £613,000 claimed. I have reduced many of the other items to a certain extent but I have not allowed [item 4], given their ages and the other provision made. The resulting total is £1,010,500 and is to be found at Schedule F. 95. The next schedule is animals. The total claimed is £673,306 pa, because it includes the purchase and running costs of horses. The counter proposal is £102,100 pa. I do, of course, accept that the children should have ponies to ride. The issue is the cost of these animals both to acquire them and to have them in livery. I am not convinced that the costs claimed are reasonable. I do not consider that these horses need to be expensive, although they must be safe to ride. I have allowed £25,000 pa for their acquisition; £75,000 pa for their livery and upkeep; and £25,000 pa for replacement horseboxes. I do not entirely understand the staff costs if I have allowed £75,000 pa for livery. I allow £50,000 pa for salaries and £25,000 pa for accommodation. I have reduced the other sums claimed to what I consider to be appropriate figures. I allow the costs for their pets as claimed. This makes a total budget of £277,050 pa and is in Schedule G. 96. The next schedule is Children’s staffing. The claim is for £644,876 pa. HH counters with an offer of £141,400. I cannot ignore the provision that has been available for these children over the years. I am of the view that the costs of the first nanny should be allowed in full. I cannot see the need for a second nanny given the ages of the children. I allow the nurse in full as she has always been available for the children. I have taken the view that I should allow the tutor’s expenses going forward at £100,000 pa together with accommodation at £33,800 pa. HRH is entitled to obtain any payment in excess of £100,000 pa from the education fund. In any event, the resulting total under this heading is £450,077 pa, which is included in Schedule H. The dispute in relation to the health care budget is very minor. HRH seeks £32,000 pa. HH offers £22,000. I allow the claim in full. 97. Finally, I turn to the two offices. HRH argues that the cost of her London office is £1,109,220 per annum, with a further £180,000 pa for professional fees, whereas her office in Amman costs £697,100 pa. I have no doubt that these figures are correct. The question, however, is the proportion of these amounts to be attributed to the children. HRH contends that 80% of these figures are due to the children. HH disagrees fundamentally and offers £40,000 pa in relation to London and nothing in relation to Amman. I am of the view that very little of the Amman Office relates to the children. I consider I should reverse the percentages and allow 20%, namely £139,400 pa. I accept that the costs of the London office relate to the children considerably more than the Amman office. I assess the proportions in London as being 50% for the children and 50% for HRH. I therefore allow the sum of £644,610 pa. The resulting total of all these items is £11,154,981 pa and is to be found in Schedule I. I round this up to £11,200,000 pa, which is £5,600,000 pa per child. It will be index-linked and tied to the Consumer Prices Index. The payments will be made as secured provision, the security being the HSBC bank guarantee. I decline to make any different assessment for Higher Education. It is too far ahead. Whilst in some cases, the provision might reduce at that point, I do not propose to do so in this case as I am concerned that many of the costs, such as those relating to the two properties, will continue regardless. The orders will be paid to HRH for the benefit of the children. When the children are in Higher Education, it will be up to HRH as to how she allocates the money for them. 98. I next turn to the question of backdating. I decline to order any backdating in relation to the security budget as I was told that Director 1 had worked within the figures provided, other than in relation to the costs of Company X. HRH will simply have to deal with the past costs of the company out of the other provision made for her. She is, however, undoubtedly entitled to backdating of the general maintenance in the sum of £11,200,000 pa other than in relation to the costs of travel and security as that travel budget has not been spent due to the pandemic, other than the provision I made in the summer. Even some of that was not spent. I have allocated £5,115,544 for travel and the security costs of that travel. If this is deducted from the maintenance awarded, the sum reduces to £6,084,456 pa or £507,038 per month. The date of the original application pursuant to Schedule 1 was 9 December 2019, some 24 months ago. However, the President made an order for £84,000 per month on 5 March 2020, some twenty months ago. I propose to backdate the order, less the travel expenses, to 9 December 2019 but with credit for payments made. The arrears would be in the order of £11,832,874 but with credit for payments made of £1,680,000. There will then be further credit for the money unspent in the summer amounting to £202,579 in relation to the holidays and £322,230 for the security for those holidays. Netting the various figures off against each another gives a total outstanding of £9,628,065. I am satisfied that this does not include any element of double counting. The costs of security for the children as adults and the level of security 99. There remain two final issues. The first is what happens when the children cease tertiary education. I have not provided for the costs of their security at that point but they almost certainly will continue to have security needs, if only as the children of such high profile parents. The claim was for provision for all three in the sum of £17,196,369 at that point. I have already allocated provision for HRH of £5,500,000 going forward. I consider that a similar sum should be allocated to each child. This is so close to the sum of £5,600,000 that they are receiving for their maintenance as to make no difference. I therefore direct that, on the children ceasing full-time education, the maintenance provision continue at the same rate but payable to them directly and for the entirely different purpose of security. If the figure is not needed, there can be an application to reduce or discharge the order at that point. If it is too little, there can be an application to increase. Either way, the position of the children is protected. Finally, I have to consider the question of the bank guarantee. In simple terms, HH offered £500 million of which I have ordered that he pay £210 million to HRH by way of lump sum. I am therefore clear that the HSBC Bank Guarantee should be in the sum offered less the capital provision ordered. This results in the figure reducing from £500 million to £290 million. I am satisfied that the terms of the guarantee as suggested by HSBC are appropriate. Conclusion 100. It follows that the award is as follows:- (a) A lump sum to HRH of £251,500,000 to be paid within 3 months; (b) An education fund in the agreed sum of £3,040,000 to be held by accountants to be agreed between the parties or appointed by the court; (c) Payable from the date of this order, secured periodical payments payable at the rate of £5,600,000 pa per child to HRH for the benefit of the children until they shall respectively cease full-time tertiary education or four years after they have commenced their first degree, whichever is later, whereupon it is to be paid direct to each child until further order with the figures being indexed according to the CPI index and secured by an HSBC Bank Guarantee in the sum of £290 million. (d) The order of the President is varied to provide for periodical payments from 9 December 2019 to the date of this order at the rate of £3,042,228 per child over and above the security budget, with credit for payments made. The arrears of £9,628,065 to be paid within one month. (e) No order as to costs. 101. Finally, I want to pay tribute to the advocacy that I have received, both written and oral, on behalf of both parties. It was of the finest possible quality. Nothing more could have been said or done on behalf of either party. Mr Justice Moor 9 November 2021 Schedule A – Capital award Schedule B – Security budget for capitalisation Schedule C – HRH’s home near Kensington Palace Schedule D – Castlewood Schedule E – Holidays Schedule F – Leisure