The High Court will next week hear an appeal against what is thought to be the first costs-capping order made against a defendant.

Pharmaceutical company Eli Lilly had estimated its costs of defending an action brought by Susan James over alleged side-effects of the drug Zyprexa at £940,000. James’ solicitors ­estimated her costs at £77,000, in a claim valued at around £500,000.

In the capping order Master Leslie in the Queen’s Bench Division described the case as a ‘David and Goliath’ scenario, in which Eli Lilly had to spend a great deal of money to defend the claim and Zyprexa’s reputation as the drug of choice to treat bipolar disorder and schizophrenia. The company has paid out $1.2bn to settle class actions in the US with no admission of liability.

Master Leslie said the importance of the case to the claimant, who alleges that she developed diabetes from taking the drug, ‘pales into insignificance’ when compared to its importance to Eli Lilly. Therefore it would be ‘quite unjust’ for the claimant, if she were to lose, to be liable for all the costs spent by Eli Lilly, he said.

Master Leslie took account of the probability that James would have to drop her case if he did not order a cap.

James’ solicitor, Paul Balen of Nottingham firm Freeth Cartwright, argued that, while Eli Lilly was entitled to spend so much, it should not prevent his client from seeking compensation. Eli Lilly declined to comment.