Cost Management Flashcards
What is costs?
amount that is due to legal advisers for their service
What happens if at the end of trial, the court gives an order which is silent as to costs?
What does this mean?
no party is entitled to costs
each party pays their own legal advisers
When may the court make an order about costs?
At any stage in a case
What is the starting point when it comes to costs?
The loser pays the winner’s fees as well as their own
Who pays the fees?
The loser
What does the court have discretion to when it comes to costs?
- Who pays the cost
- How much the costs are
- When costs should be paid
In deciding on costs, what must the court have regards to?
all circumstances of the case
- how parties have conducted themselves
- level of success of the winner
- any offers to settle
TRUE OR FALSE: Loser pays the winner’s costs means that they must pay ALL of their fees regardless of the circumstances? Why?
False. court may decide otherwise
TRUE OR FALSE: Loser pays all the winner’s costs principle may be adjusted?
TRUE
What options does the court have in determining who pays costs between C and multiple Ds?
Sanderson Order
Bullock Order
What is a Sanderson order?
court will order losing Ds to pay both fees of C and the winning defendants as well as their own, as well as C’s winning costs
What is a Bullock order?
Court will order C pays the winning D’s costs and order the losing D’s to pay C’s winning costs, their fees, as well as reimbursed C for the winning D’s fees
The court when exercising direction as to costs may choose to order that costs be paid by which two mechanisms/orders?
Sanderson Order
Bullock Order
What happens if C is found to have been unreasonable for bringing claim against multiple Ds?
likely C will be ordered to pay own costs of bringing the claim
What is the time for complying with order for costs?
within 14 days of judgment if amount of costs is stated
What is the method for assessing Fast Track claims?
Summary Assessment
What is the method for assessing Multi-Track claims?
Detailed Assessment
What is a summary assessment of costs?
Where court determines costs there and then at the end of the hearing/trial
What is a detailed assessment of costs?
Where costs are assessed at the conclusion of proceedings
Who’s duty is it to assist the court in making a summary assessment?
The parties and their legal representatives
Eacg party who intends to claim costs, must prepare a written statement of costs showing what?
- number of hours claimed
- hourly rate claimed
- amount/nature of disbursement
- legal representatives costs
- any VAT
What must the party do with their statement of costs?
file at court
serve on parties
When must a statement of costs be served on the other party in Fast Track trials?
not less than 2 days before trial
When must a statement of costs be served on the other party in 1 day long trials?
not less than 24 hours before trial
What basis are costs assessed?
Either
Standard basis of assessment
or
Indemnity basis of assessment
What is the standard basis of assessment?
-proportionately and reasonably incurred
or
-of a proportionate and reasonable amount
What is the indemnity basis of assessment?
disallows unreasonable costs
What will happen if court considers in a standard basis of assessment that the costs have been unreasonably incurred or are of an unreasonable amount?
what may the court do instead?
Full costs will not be allowed/
may award costs on indemnity basis
What is the general rule of detailed assessment costs?
The general rule is that the costs of any proceedings or any part of proceedings are not to be assessed until the conclusion of proceedings
What happens if parties cannot agree on costs?
Cost officer decides amount for costs payable
What is the name of the order when a Cost officer has to decide amount for costs payable?
‘final order for costs to be assessed if not agreed’
How is detailed assessment commenced?
Party serves notice of commencement and the bill of costs
When must detailed assessment commence?
within three months of final judgment
What happens if D disputes the detailed assessment?
D can serve ‘Points of dispute’
When should ‘Points of dispute’ be served?
within 21 days of receiving ‘notice of commencement’
What can C do if D serves a ‘Point of dispute’?
C can reply to the dispute
How/ When can C reply to D’s ‘Point of dispute’?
C can serve a reply to the points of dispute.
within 21 days of receiving the points of dispute
What will court have regards to when assessing costs in Fast-Track claims?
-All circumstances including
- parties conduct
- level of success of winer
- any offers to settle
What will the court have regards to when assessing costs in Multi-Track claims?
-All circumstances including
- parties conduct
- level of success of winer
- any offers to settle
- amount agreed in final costs budget
TRUE OR FALSE: Unless court orders otherwise, all parties (except litigants in person) must file and exchange a cost budget?
TRUE
When must a cost budget be filed?
no later than 7 days before the first case management
When must parties file a cost budget?
claims less than 50k
other cases: not later than 21 days before first case management
TRUE OR FALSE: All statements of case must be verified by a statement of truth?
TRUE
TRUE OR FALSE: Cost budgets must be verified by a statement of truth?
TRUE
What happens if a party fails to file a cost budget?
party still taken to have filed one which only deals with court fees
What happens where there is a difference of 20% or more between costs claimed by receiving party on detailed assessment and lower costs shown in a cost budget filed by that party?
That party must provide statement of the reasons for the difference with the bill of costs
Example of when cost budgets do not come in play?
- Part 8 claims
- Part 7 claims which are subject to fixed costs
- where court orders otherwise
What is a hearing which is solely for the purpose of cost management called?
cost management conference
What is a cost management conference?
a hearing which is solely for the purpose of cost management
Example of when a cost management order will be made?
- cost budgets are filed and exchanged
- cost management order has been made
Example of when a cost management order will be not made?
- court satisfied litigation can be conducted at proportionate costs in accordance with O.O
- court considers costs disproportionate
- court does not have to make a court management order
What will court have regards to when making any cost management order?
- party’s last approved/agreed budget
What will court have regards to when deciding whether to make a cost management order?
- any available budgets
- costs involved in each procedural step
- consider whether budgeted costs are reasonable and proportionate
What can a party do if they have concerns that the opposing party may not be able to afford to pay them costs if they win?
Apply for security of costs
How can security of costs be given?
- paying sum of money into court
- obtaining and giving a guarantee for costs
- providing some other security
When can D make an application for security of costs be made?
made at any stage of the proceedings after serving AOS/Defence
How should an application for security of costs be made?
promptly as soon as the facts justifying the order are known
What conditions need to be satisfied on an application for security of costs?
ALL circumstances
- If it is just to do so
- If an enactment allows
- where C is a company
What must the court do if they make an order for security of costs?
Court will determine amount of security and the manner and time which security must be given
When can C apply for an interim payment?
where C wants to claim in advance of what he believes he will win in damages
When can an application for an interim payment be made by C?
After end of period for D to file AOS
TRUE OR FALSE: There can be more than 1 interim application made?
TRUE
When will the court likely make an order for for interim payment?
- D has admitted to liability
- C already has judgment but awaiting assessment of damages
- court is satisfied that if claim went to trial, party will win
TRUE OR FALSE: Unless D agrees, interim payment is not disclosed at trial?
TRUE
TRUE OR FALSE: Court may make an order for interim payment in one sum or in instalments?
TRUE
What will cost orders following an interim application be subjected to? Who? When?
A summary assessment by judge at end of hearing
When are interim costs payable by?
within 14 days of them becoming due
What does it mean if there is no order as to costs after an interim hearing?
It means party pays their own costs
