Assessment and Recovery of Costs

Question 1

Costs/costs in any event

Answer 1

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

Question 2

Costs in the case

Answer 2

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

Question 3

Costs reserved

Answer 3

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

Question 4

Claimant’s/defendant’s costs in the case application

Answer 4

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

Question 5

Costs thrown away

Answer 5

The party responsible for throwing away costs pays both sides’ costs

Question 6

Costs of and caused by

Answer 6

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

Question 7

Costs here and below

Answer 7

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

Question 8

No order as to costs

Answer 8

Each party to pay their own costs

Question 9

The usual costs rule

Answer 9

Costs follow the event

Question 10

Where the claimant succeeds in part in their claim but the defendant also succeeds in part on a counterclaim-

Answer 10

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

Question 11

Once a costs capping order is made-

Answer 11

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

Question 12

A costs capping order will be made when-

Answer 12

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

Question 13

Purpose of costs budgeting

Answer 13

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

Question 14

Where the value of the claim is less than £50k/costs are less than £25k-

Answer 14

Only the first page of Precedent H is to be exchanged and filed

Question 15

When does a costs budget have to be filed?

Answer 15

For lower value with DQs and for rest 21 days before CMC

Question 16

The approved/agreed costs budget-

Answer 16

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

Question 17

Failure to file a costs budget means that-

Answer 17

The party will only be entitled to recover their court fees

Question 18

When are percentage-based and issue-based costs budgets considered?

Answer 18

Where there are a number of issues in the case upon which to make a ruling

Question 19

Is variation of costs budgets possible?

Answer 19

Yes

Question 20

Which costs are fixed in FT?

Answer 20

Only trial costs - based on the value of the claim but can be varied by the court

Question 21

Costs in SCT

Answer 21

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

Question 22

Summary assessment

Answer 22

Procedure whereby costs are assessed by the judge who has heard the case or application

Question 23

The court should make a summary assessment-

Answer 23

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

Question 24

Detailed assessment

Answer 24

A procedure by which the amount of costs is decided based upon a detailed bill of costs

Question 25

How does a detailed assessment of costs take place?

Answer 25

On paper (if amount sought less than £75k) or at a detailed assessment hearing

Question 26

When does a detailed assessment procedure have to begin?

Answer 26

Within three months of the judgment

Question 27

How does a detailed assessment procedure begin?

Answer 27

By service on the paying party a bill of costs and a notice of commencement

Question 28

Deadline to serve points of dispute

Answer 28

21 days

Question 29

If no points of dispute are served-

Answer 29

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

Question 30

If there is no agreement, the receiving party-

Answer 30

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

Question 31

Provisional assessment

Answer 31

Assessment of costs on paper without hearing

Question 32

Any party who requests an oral hearing after rejecting provisional assessment-

Answer 32

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

Question 33

Hunt v Douglas Roofing Ltd 1990

Answer 33

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)

Question 34

Interest runs from the date-

Answer 34

Of the event giving rise to the entitlement to costs

Question 35

Wasted costs

Answer 35

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

Question 36

It is appropriate to make a wasted costs order when-

Answer 36

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

Question 37

Before a wasted costs order is made-

Answer 37

The legal representative can make written submissions or request a hearing