Assessment and Recovery of Costs Flashcards
Costs/costs in any event
The party in whose favour the order is made is entitled to the costs in respect of the part of the proceedings to which the order relates
Costs in the case
The party in whose favour the court makes the order for costs at the end of the proceedings is entitled to their costs of the part of the proceedings to which the order relates
Costs reserved
The decision about costs is deferred to a later occasion but if no later order is made the costs will be costs in the case
Claimant’s/defendant’s costs in the case application
If the party in whose favour a costs order is made is awarded costs at the end of the proceedings that party is entitled to their costs of the part of the proceedings to which the order relates; If any other party is awarded costs at the end of the proceedings, the party in whose favour the costs order is made is not liable to pay the costs of any other party in respect of the part of the proceedings to which the order relates
Costs thrown away
The party responsible for throwing away costs pays both sides’ costs
Costs of and caused by
If made on amendment of statement of case application, the party in whose favour this is made is entitled to the costs of preparing for and attending the application and the costs of any consequential amendment to their own statement of case
Costs here and below
The party in whose favour a costs order is made is entitled not only to their costs in respect of the proceedings but also to their costs of the proceedings in any lower court
No order as to costs
Each party to pay their own costs
The usual costs rule
Costs follow the event
Where the claimant succeeds in part in their claim but the defendant also succeeds in part on a counterclaim-
The usual form of order made is judgment of the claimant on the claim with costs and judgment for a defendant on the counterclaim with costs
Once a costs capping order is made-
The party is not limited in respect of what they can spend on litigation but on what they can recover from the other party if they win and obtain a costs order
A costs capping order will be made when-
It’s in the interest of justice to do so and there is a substantial risk that without such an order costs will be disproportionately incurred and this cannot be dealt with via case management directions or detailed assessment
Purpose of costs budgeting
To manage the steps to be taken in the case and the costs to be incurred by the parties so as to further the overriding objective
Where the value of the claim is less than £50k/costs are less than £25k-
Only the first page of Precedent H is to be exchanged and filed
When does a costs budget have to be filed?
For lower value with DQs and for rest 21 days before CMC
The approved/agreed costs budget-
Will be taken into account by the court when assessing costs and the court will not depart from it unless it has a good reason to do so
Failure to file a costs budget means that-
The party will only be entitled to recover their court fees
When are percentage-based and issue-based costs budgets considered?
Where there are a number of issues in the case upon which to make a ruling
Is variation of costs budgets possible?
Yes
Which costs are fixed in FT?
Only trial costs - based on the value of the claim but can be varied by the court
Costs in SCT
Fixed costs on issuing, court fees, travelling expenses, loss of earnings of a witness, expert evidence if allowed, if injunction legal advice, also costs if unreasonable behaviour
Summary assessment
Procedure whereby costs are assessed by the judge who has heard the case or application
The court should make a summary assessment-
At the conclusion of a trial in the fast track or at the conclusion of any other hearing which has lasted not more than one day unless there is a good reason not to
Detailed assessment
A procedure by which the amount of costs is decided based upon a detailed bill of costs
How does a detailed assessment of costs take place?
On paper (if amount sought less than £75k) or at a detailed assessment hearing
When does a detailed assessment procedure have to begin?
Within three months of the judgment
How does a detailed assessment procedure begin?
By service on the paying party a bill of costs and a notice of commencement
Deadline to serve points of dispute
21 days
If no points of dispute are served-
The receiving party can apply to the court for a default costs certificate for the full amount of the bill plus fixed costs and court fee
If there is no agreement, the receiving party-
Must apply for a detailed assessment hearing at court within three months of the original three month period in which the assessment procedure has to be commenced
Provisional assessment
Assessment of costs on paper without hearing
Any party who requests an oral hearing after rejecting provisional assessment-
Will pay the costs of and incidental to that hearing unless they achieve an adjustment in its favour by 20% or more of the sum provisionally assessed
Hunt v Douglas Roofing Ltd 1990
A litigant who has been awarded costs is entitled to interest on those costs from the date upon which the order was made (as opposed to assessment)
Interest runs from the date-
Of the event giving rise to the entitlement to costs
Wasted costs
Any cost incurred by a party as a result of any improper, unreasonable or negligent act or omission or where the court considers it unreasonable to expect that party to pay such costs
It is appropriate to make a wasted costs order when-
The legal representative acted improperly, unreasonably or negligently; that conduct incurred unnecessary costs; it is just in all the circumstances to order them to compensate the party
Before a wasted costs order is made-
The legal representative can make written submissions or request a hearing
