Costs

Question 2

What is the general rule regarding costs?

Answer 2

The loser pays the costs (solicitor’s fees) and disbursements of the winner.

Question 3

On what basis are costs assessed by the court?

Answer 3

Standard basis (proportionate costs, doubt in favor of paying party) and indemnity basis (difficult to dispute costs).

Question 4

When must parties file a costs budget in multi-track cases?

Answer 4

At least 21 days before the Case Management Conference (CMC) if seeking £50K or more; with Directions Questionnaire for less than £50K.

Question 5

What happens if a party fails to file a costs budget?

Answer 5

They will not be able to recover costs even if they prevail.

Question 6

Who can apply for Security for Costs?

Answer 6

Only the defendant (D) can apply for this to ensure the claimant (C) can pay their costs if ordered.

Question 7

What conditions allow for Security for Costs?

Answer 7

C is outside the jurisdiction, C is a company likely unable to pay, C has changed address to evade litigation, or C has moved assets outside England and Wales.

Question 8

What is a Wasted Costs Order?

Answer 8

A court order requiring a solicitor or party to pay the costs of the other party for improper, unreasonable, or negligent actions.