Costs Flashcards
What are the types of litigation costs?
- Solicitor-client
- Inter parties
- Non-party
What are the costs that a party might incur in pursuing litigation?
- Solicitors fees
- Court fees
- Counsel fees
-Experts fees - Other - photocopying, travel, expert witnesses, LR/CH fees
What is the general rule for inter parties costs?
The unsuccessful party will be ordered to pay costs of successful party
Who has the power to determine by who/to what extent costs of proceedings are paid?
Court
When does a court consider costs?
- End of interim hearing
- end of trial
What happens if judge makes no order as to costs?
Parties pay their own costs
What is the indemnity principle?
Cant recover sum in excess of own liability to solicitor
What are non-party costs?
Requiring person who is not a party to proceedings to pay towards costs
What are the principles when deciding non-party costs?
- Whether it is just to make the order
- NP funds + substantially controls or is to benefit from proceedings
What are the courts considerations when deciding whether costs are payable by one party to another?
- Parties’ conduct
- Whether a party has only succeeded on some issues/part of claim
What are the court’s bases of assessment when making a costs order?
- Standard basis
- Indemnity basis
What costs will the court allow on the standard basis?
- Proportionately + reasonably incurred
- Proportionate + reasonable amount
- Any debt resolved in favour of paying party
What costs will the court allow on the indemnity basis?
- Reasonably incurred
- Reasonable in amount
- Any debt resolved in favour of receiving party
What are the common amoutns received for each basis of assessment?
Standard - 60%
Indemnity - 70-80%
When is an assessment on the indemnity basis more likely?
where element of a party’s conduct deserves mark of disapproval
Costs are proportionate if they bear a reasonable relationship with…
- Sums in issue in the proceedings
- Value of any non-monetary relief in issue in proceedings
- Complexity of litigation
- Additional work generated by conduct of paying party
- Wider factors eg public importance or reputation
What are the factors taken into account when deciding amount of costs?
- Parties conduct before/during proceedings
- Value of money/property involved
- Importance to parties
- Complexity
- Skill, effort, specialised knowledge and responsibility
- Time spent on case
- Place where/circumstances in which work was done
- Receiving party’s last approved budget
When should costs be paid?
Within 14 days of:
* Date of judgement/order if it states the amount of costs
* If decided later – date of certificate which states amount or
* Such other date as court specifies
What are fixed costs generally for?
- Uncontested disputes
- enforcement proceedings
- small claims
When do fixed costs not apply?
If the court orders otherwise
What are the two types of costs assessment procedures?
- Summary assessment
- Detailed assessment
What must parties do for a summary assessment?
- Prepare statement of costs (form N260)
- File and serve on each party no less than 24 hours before time fixed for hearing
When should the summary assessment procedure be used (unless there is good reason not to)?
- Fast track cases at end of trial
- End of hearing of interim application/matter lasting no more than a day
What is the procedure for detailed assessments?
- Court, deciding that one party should pay other’s costs, orders that they are subject to detailed assessment
- Receiving party serves notice of commencement and copy of bill of costs on paying party
- Points of dispute on any item in bill of costs should be served on receiving party within 21 days
- No agreement = receiving party files request for detailed assessment at hearing when costs officer determines sum to be paid
What is the effect of an interim hearing order of costs in any event?
Party in whose favour order is made is awarded costs of the interim hearing from other party, regardless of who eventually wins
What is the effect of an interim hearing order of costs in the case?
Party who eventually gets costs at trial will recover costs of interim hearing from other party
What is the effect of an interim hearing order of costs reserved?
Decision put off to a later occasion, no decision = costs in the case
What is the effect of an interim hearing order of claimant costs in the case?
- C successful + awarded costs = can include interim hearing cost
- D awarded costs = C does not have to pay D’s interim hearing
What is the effect of an interim hearing order of defendant costs in the case?
- D successful + awarded costs = can include interim hearing cost
- C awarded costs = D does not have to pay C’s interim hearing
What is the effect of an interim hearing order of costs thrown away?
If judgement/order set aside, party in whose favour costs order is made is entitled to costs incurred as a result of setting aside.
What can a costs thrown away order include?
hearing (preparation and attendance) where original order was made
hearing (preparation and attendance) where judgement set aside
Adjourned hearing
Enforcement of order subsequently set aside
What is the effect of an interim hearing order of costs of and caused by?
Party must pay costs resulting from something they have done
What is the effect of an interim hearing order of costs here and below?
Party in whose favour costs order made is entitled to costs of proceedings and cost of proceedings in any lower court.
What is the exception for costs here and below?
Appeal from Divisional court – not any court lower than Divisional
What is the effect of an interim hearing no order of costs?
Each party bears own costs
