Costs

Question 1

What is the general rule as to costs?

Answer 1

unsuccessful party to pay successful party’s costs

Question 2

What factors will the court take into account when considering whether to depart form the general rule?

Answer 2

-conduct of all parties
- whether a party has succeeded on part of their case?
- any admissable offer to settle (not Part 26 which carries on consequences)

Question 3

What must court do when departing from general rule - especially where they feel it is ‘disproportionate’ to do so.

Answer 3

give reasons for departure - esp if different from judgment

Question 4

where there has been partial success/mixed result of particular issues within a case - what order for costs is likely to be made?

Answer 4

proportionate costs order

Question 5

advantage of calderbank offers at cost assessment

Answer 5

• court minded to give weight to them as it encourages early settlement
• without prejudice for the claim - taken into account to assist with cost assessment

Question 6

key ‘conduct’ to take into account when considering all circumstances

Answer 6

unreasonable refusal to engage/agree on ADR - HALSEY factors to show reasonablness

Question 7

What is a Sanderson Order?

Answer 7

‘unsuccessful’ Defendant directly pays ‘successful Ds costs - usually used where C has inability to pay successful Ds costs

Question 8

What is a Bullock Order?

Answer 8

Claimant pays ‘sucessful’ Ds costs and is able to be indemnified by the ‘unsuccessful’ D.

Question 9

When might a Sanderson/Bullock order be used?

Answer 9

When action reasonably brought against 2 parties

Question 10

when must a party comply with an order for the payment of costs?

Answer 10

within 14 days of
- date of judgment
- date of certificate stating amount
- court specified date

Question 11

What costs powers does the court have in relation to misconduct by party/rep?

Answer 11

• can order part of costs to be dismissed
• order party to pay costs which misconduct has caused the other to incur
  -(if not present - legal rep must notify within 7 days of receiving notice)

Question 12

What cases does QOCS apply to?

Answer 12

• personal injury
• Fatal accident
• death/PI - for an estate

Question 13

What is the general QOCS rule?

Answer 13

• judgment can be enforced against a C only up to the value of damages/interest they have been awarded
• any outstanding amount shall not be treated as outstanding debt on any record

Question 14

What are the exceptions to QOCS - where permission NOT required?

Answer 14

Enforceable to full extent where proceedings struck out on grounds of
- C no reasonable grounds for bringing claim
- abuse of process
- conduct of C/rep disrupts proceedings

Question 15

What are the exceptions to QOCS - where permission required?

Answer 15

enforceable to full extent WITH PERMISSION where claim found to be fundamentally dishonest
Claim made for financial benefit for benefit of person other than C /C

Question 16

What is the meaning of fundamentally dishonest?

Answer 16

dishonesty goes to the root of either the whole of substantial part of the claim

Question 17

Liability to pay for an ADR process - generla rule

Answer 17

each party pays their own costs and expenses in relaiton to ADR - unless other agreement reached

Question 18

What is the principle of std. basis costs.

Answer 18

any doubt will be resolved in favour of the PAYING party

Question 19

What is the principle of the indemnity basis of costs?

Answer 19

Any doubt will be resolved in favour of the RECEIVING party

Question 20

What is the overall rule for assessing costs?

Answer 20

NOT allow costs which have been unreasonably incurred or are unreasonable in amount

Question 21

factors to take into account when considering if costs are proportionate.

Answer 21

• sum in issue
• value of any non-monetary relief
• complexity of litigation
• any additional work generated by conduct of paying party
• any additional work due to vulnerability of any party/witness

Question 22

indemnity basis - principles to assign

Answer 22

conduct out of the norm —> disgraceful behaviour

Question 23

standard basis - the court will ask itself whether costs have been (x2)

Answer 23

proportionately and reasonably incurred OR
proportionate and reasonable in amount

Question 24

indemnity basis - the court will ask itself whether costs have been (x2)

Answer 24

unreasonably occurred OR
unreasonable in amount

Question 25

Where the court orders a detailed assessment of costs to be carried out - what will the paying party immediately be required to do

Answer 25

pay a reasonable sum on account of costs - unless unreasonable to require it - interim payment effectively

Question 26

General rules of detailed assessment

Answer 26

not to be assessed until the conclusion of proceedings - can be done immediately
not stayed pending appeal, unless court orders so.

Question 27

When should court carry out a summary assessment?

Answer 27

• at the conclusion of a fast track trial
• at the conclusion of any other hearing not lasting more than 1 day.

Question 28

How must parties assist the court in a costs assessment?

Answer 28

• schedule of claim from each party intending to claim (hours, hourly rate, grade of fee earner, legal costs, counsel fees, VAT)
• filing a statement of cost at court (copies to all parties)
• fast track - NLT 2 days before trial
• all other - MLT 24 hrs before time fixed for hearing

Question 29

If a party fails to file supporting doc according to PD - what might the risk be?

Answer 29

this will be considered when court decides what costs order to make and costs of any further hearing or detailed assessment