16. Costs Flashcards

1
Q

For what five reasons might the court depart from the general rule that the loser pays costs?

A
  1. Failure to comply with pre-action protocol
  2. Failure to negotiate, or engage in ADR
  3. Rejection of a Part 36 offer (discussed in chapter 17)
  4. Exaggeration, or
  5. Failure to succeed on the whole of the claim
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2
Q

What does the indemnity principle provide?

A

A party can not recover more from an opponent than they are liable to pay their own legal representative

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3
Q

What are the two bases of costs assessment?

A
  1. Standard basis
  2. Indemnity basis
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4
Q

What occurs under the standard basis of costs assessment?

A

Court allows only proportionate costs and exercises doubt in favour of the paying party

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5
Q

What triggers costs assessment on an indemnity basis, and what occurs under this?

A

Paying party incurring unnecessary costs by their conduct.

The court does not consider proportionality and the paying party cannot object as to costs unless they are claiming the solicitor shouldn’t have done the work at all.

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6
Q

What four factors will the court take into account when assessing costs?

A
  1. Value of the claim
  2. Complexity and importance of the claim
  3. Skill and effort involved
  4. Time spent
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7
Q

What are the two ways a party can file their costs budget, depending on the value of the case?

A
  1. £50,000 and below: filed with Directions Questionnaire
  2. Over £50,000: filed 21 days before Case Management Conference
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8
Q

What is the effect of the court making a Costs Management Order, and what is the % leeway afforded?

A

It means that the cost budget should not be departed from, save for a 20% leeway

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9
Q

What is the possible consequence of not filing a budget?

A

Costs may not be recoverable, beyond court fees

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10
Q

What are inter-partes costs?

A

A term given to describe the other party’s costs when you are obligated to pay them, to be distinguished from a party’s own costs

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11
Q

In lower value cases and interim applications, how soon before (1) a hearing, and (2) a trial must a statement of costs be filed?

A
  1. 24 hours
  2. Two days
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12
Q

In lower value cases and interim applications, how soon after the hearing must costs be paid?

A

14 days

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13
Q

What three types of costs are fixed on the small claims track, departing from the general rule that orders for payment of legal costs are generally not made on the small claims track?

A
  1. Low value road traffic accidents
  2. Small claims cases or money claims
  3. Employer’s liability cases
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14
Q

What is the starting point for a detailed assessment of costs, and within what time limit must the receiving party file this document?

A

The receiving party prepares a bill of costs and serves within three months of judgment or order

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15
Q

After being served with a bill of costs, what does a paying party file and within what time limit after being served must they do so?

A

The paying party files their points of dispute within 21 days.

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16
Q

What does it mean for a District Judge to provisionally assess the bill?

A

District Judge will consider the reasonableness of the bill

17
Q

What is the upper limit for costs, above which a provisional assessment will not occur?

A

£75,000

18
Q

What is the receiving party’s option if they are not happy with the amount in the provisional assessment, and within what time limit must they apply for this option?

A

They can challenge the provisional assessment and apply for a detailed assessment hearing within 21 days

19
Q

What must the claimant file if the bill is more the 20% over the budget?

A

A statement of reasons

20
Q

Within what time limit of the final costs certificate should costs be paid?

A

14 days

21
Q

Who is the only party that can apply for a security of costs order, and what is the logic being precluding the other party?

A

Defendant, as they cannot stop the claimant bringing proceedings, but the claimant is free to continually assess whether the defendant is worth suing

22
Q

What are the five criteria, one of which is enough, which the defendant must satisfy to make an application for a security of costs order?

A

Claimant:

  1. Resides outside jurisdiction
  2. Has changed address since claim started with a view to evading consequences of litigation, or provided no/incorrect address on the claim form
  3. Is suing for the benefit of a third-party
  4. Is corporate entity and there is reason to believe they won’t be able to pay costs
  5. Has taken steps regarding their assets that would make it difficult to enforce a costs order, e.g. moving them outside the jurisdiction
23
Q

In what situation is a non-party costs order available?

A

Where the non-party funds the proceedings and controls or benefits from them

24
Q

How must a solicitor conduct themselves in order to have a wasted costs order made against them?

A

Improperly, unreasonably, or negligently

25
Q

In addition to improper, unreasonable, or negligent conduct, what are the two criteria for a court to make a wasted costs order against a solicitor?

A
  1. Conduct caused unnecessary cost, and
  2. It is just to make the order
26
Q

Within what time limit of a wasted costs order being made must a solicitor inform their client?

A

7 days