Costs Flashcards
What is the general rule in relation to costs under CPR 44.2?
The court has discretion to determine whether one party should pay the other’s costs and, if so, how much. However, generally the unsuccessful party will pay the costs of the winner.
Which factors influence the court’s discretion as to costs?
Parties’ conduct (including reasonable refusals to engage in ADR /offers to settle) and whether the party succeeded in all or part of the claim.
What types of costs might be incurred in litigation?
Solicitor’s fees, fees and disbursements (court/counsel/expert fees), and other costs (photocopying, travel costs).
What is the time limit for complying with a costs order under CPR 44.7?
Within 14 days of the date of the judgment, order, or certificate stating the amount of costs, unless the court orders otherwise.
What are the two bases for determining the amount of costs?
- Standard Basis
- Indemnity Basis
What are the criteria for costs on the standard basis?
The party may claim costs that are proportionately and reasonable incurred and which are proportionate and reasonable in amount, with any doubt being resolved in favour of the paying party.
Usually around 60% of costs are recovered.
What does ‘proportionate’ mean in the context of costs?
Costs must bear a reasonable relationship to the sums in issue, the value of non-monetary relief in issue, the complexity of the case, the work generated by the conduct of the paying party, and other relevant factors.
What are the criteria for costs on the indemnity basis?
Court allows costs which are reasonably incurred and reasonable in amount to be recovered. Typically 70-80% of costs are recoverable. Any doubt is resolved in favour of the receiving party.
Which factors does the court consider in determining whether to order costs to be paid on the standard or indemnity basis?
- Conduct of the parties (if bad, indemnity)
- Complexity
- Place where and circumstances in which work done
What are fixed costs under CPR 45?
Costs which are fixed by the CPRs, generally applied to uncontested disputes, enforcement proceedings and small claims track and intermediate track.
When are costs assessed by the court?
When the parties cannot agree on costs, through either summary or detailed assessment.
What is a summary assessment of costs?
Used in fast-track cases or interim applications at the end of a trial or on a matter not lasting more than 1 day (5 hours) where the court determines the amount payable immediately.
What is a detailed assessment of costs?
A more complex process where the court orders a detailed assessment if costs are not agreed, involving a commencement notice, bill of costs, disputes bill of costs and possibly a hearing.
What are the different kinds of interim costs orders?
- Costs in Any Event = the winning party at the interim stage is awarded costs of the interim hearing regardless of who wins at trial
- Costs in the Case = the winner of the whole trial recovers costs of the interim hearing
- Costs reserved = the decision about who pays costs of the interim hearing is postponed
- Claimant’s / Defendant’s Costs in the Case = if D awarded costs at trial, C does not have to pay costs of interim app and vice versa.
- Costs thrown away = if judgment / order set aside, party in whose favour costs order is made is entitled to costs incurred as a result of the setting side, such as setting aside hearing, prep and attendance.
- Costs of and Caused by = party must pay costs resulting from something it does, such as amending particulars of claim.
- Costs here and below = party in whose favour order is made is entitled to their costs plus the costs of the proceedings in the lower court, excluding divisional courts.
