Costs Flashcards
What is the general rule about who pays?
Unsuccessful party pays successful party’s costs
Are legal costs recoverable in the small claims track?
No (costs payable only relate to disbursements)
How are costs dealt with usually on the fast track?
Usually summarily assessed
What is the effect of a costs management order if a party is awarded their costs on the standard basis at trial?
They will recover the amount of the last approved or agreed budgeted costs
(Court can depart from budgeted costs only if good reason to do so)
What is the effect of a costs management order if a party is awarded their costs on the indemnity basis at trial?
Incurred costs are assessed by court in usual way
What are fixed costs?
In certain situations (eg. default judgement, summary judgement), CPR fixes amount party may recover
On fast track: fixed costs imposed on the advocate who prepares & appears at trial
What is a summary assessment, and when should the cost make a summary assessment of costs?
Summary = court determines amount payable immediately at end of hearing
Unless good reason not to, court should make summary assessment of costs at:
1. Conclusion of a fast track trial and
2. Any other hearing that has not lasted more than 1 day
(Parties must file & serve statement of costs to assist court)
What are the time limits for filing & serving a statement of costs?
Fast track trial: at least 2 days before
Interim hearing: at least 24 hours before
(Filed to assist court in summary assessment)
What is the procedure for detailed assessment of costs?
Receiving party serves Notice of Commencement of detailed assessment proceedings on paying party within 3 months of date of judgement
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Paying party has 21 days to serve points of dispute
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Receiving party has 21 days to reply
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Receiving party files request for assessment hearing within 3 months of expiry period
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If costs claimed less than £75k: court undertakes provisional assessment (without parties)
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If either party unhappy with provisional assessment, can request oral hearing within 21 days
If at oral hearing for detailed assessment, a party fails to achieve an adjustment by at least 20% in their favour, what happens?
Will be ordered to pay the costs of the hearing
What is the time limit for the receiving party to serve Notice of Commencement of detailed assessment proceedings?
Must be served within 3 months of date of judgement/order
If wish to challenge bill, paying party has 21 days to serve points of dispute (& receiving party then has 21 days to reply)
What 8 factors should the court take into account when assessing the amount of costs the receiving party is entitled to? (r44.4)
(a) Conduct of parties & efforts made to try resolve dispute
(b) Value of any money or property involved
(c) Importance of matter to parties
(d) Complexity of matter
(e) Skill, effort, specialised knowledge, responsibility etc. involved
(f) Time spent on case
(g) Place & circumstance in which work done
(h) Receiving party’s last approved or agreed budget
When assessing costs on the standard basis, how is any doubt resolved?
In favour of the paying party
How are costs assessed on the standard basis?
Costs must be proportionate to the matters in issue?
- Is item reasonably incurred?
- Is item reasonable in amount?
- Is total figure for each phase proportionate so that it bears a reasonable relationship to:
a. The sums in issue
b. The value of any non-monetary relief in issue
c. The complexity of the litigation
d. Any additional work generated by paying party’s conduct
e. Wider factors (eg. reputation, public importance)
When assessing costs on the indemnity basis, how is any doubt resolved?
In favour of the receiving party
How are costs assessed on the indemnity basis?
- Is the item reasonably incurred?
- Is the item reasonable in amount?
ie. no requirement for proportionality unlike on standard basis
Can the court order a non-party to pay costs?
Yes - discretionary power to do so where it is satisfied that:
a. The non-party was the real party interested in the litigation;
or
b. The non-party was responsible for bringing the proceedings
(nb. before any order can be made, the non-party must be added as a party to the proceedings)
What are the grounds for granting an order for security for costs?
- One or more of the conditions in Part 25 is satisfied - claimant:
→ is resident outside Hague Convention
→ is impecunious company
→ has taken steps to make enforcement difficult
and
- It is satisfied that it is just to make an order - will consider:
- Strength of claim & defence
- Causes of claimant’s impecuniosity
- Property within jurisdiction
- Timing
- Claimant’s ability to provide security
What are the Part 25 conditions that must be established as part of security of costs?
One or more of:
Claimant-
→ is resident outside Hague Convention
→ is impecunious company must show will be unable to pay
→ has taken steps to make enforcement difficult court will consider effect not motivation
What are some of the factors the court will consider when determining whether it is just to make an order for security for costs? (5)
Strength of claim & defence
Less likely D to win, less justified in seeking
Causes of claimant’s impecuniosity
ie. caused by D?
Property within jurisdiction
Timing
should apply as soon as practicable
Claimant’s ability to provide security
where C has reasonable prospect of success, courts reluctant to order security which they cannot comply with as will stifle claim (burden on claimant to show no prospect of raising funds)
Are trial costs in a fast track claim, where costs awarded on standard basis, fixed?
Yes - sum awarded depends upon the level of the damages award.
For an award of more than £15,000 the trial costs are fixed at £1,650.
What are the 4 formalities requirements for a Part 36 offer?
- In writing
- Clear it is made pursuant to Part 36
- Specify a period of not less than 21 days during which, if offer is accepted, D will pay C’s costs (‘the relevant period’)
- State whether it relates to whole or part of claim & whether it takes into account any counterclaim
What is the ‘relevant period’ of a Part 36 offer?
A period of not less than 21 days during which, if the offer is accepted, the defendant will pay the claimant’s costs
What are the consequences of acceptance of the defendant’s Part 36 offer within the relevant period?
Defendant pays C’s costs up to date of acceptance on the standard basis
- Proceedings are stayed
- Defendant pays money to C within 14 days
