Costs Flashcards
When is a ‘Costs Order’ given?
SEPARATE HEARING after TRIAL
What is the GENERAL rule about which Party pays the costs?
Loser pays the Winner’s costs BUT court DISCRETION
The court can exercise discretion to alter the general rule that the Loser pays the Winner’s costs
(1) What does the court consider in this?
(2) What are 3 components of this?
(1) ‘All the circumstances of the case’
(2)
(a) Conduct of Parties (before + during proceedings)
(b) Partial success in case (even if didn’t win overall)
(c) Offer to settle (NOT Part 36)
What are the 2 basis that a ‘Costs Order’ can be made?
(1) STANDARD basis
(2) INDEMNITY basis
If a ‘Costs Order’ is made on a STANDARD basis:
(1) What does this mean?
(2) Doubt resolved in favour of?
(1) Costs are PROPORTIONATE + REASONABLE in how they ‘incurred’ and ‘amount’
(2) PAYING party
If a ‘Costs Order’ is made on an a INDEMNITY basis:
(1) What does this mean?
(2) Doubt resolved in favour of?
(1) Costs are REASONABLE in how they ‘incurred’ and ‘amount’
(2) RECEIVING party
(1) What is the default position for whether to award costs on a ‘Standard’ or ‘Indemnity Basis’?
(2) What are 2 examples of factors that could make a court grant costs on an ‘Indemnity Basis’?
(1) Standard Basis UNLESS good reason
(2)
(a) POOR CONDUCT of Party (before + during proceedings)
(b) Refusing reasonable SETTLEMENT OFFER
On the Multi-Track, if there is an approved ‘COSTS BUDGET’, will these be considered ‘REASONABLE’?
‘Prima facie’ REASONABLE
On the Multi-Track, if there is a ‘Costs Management Order’ will the ‘Costs Budget be followed if costs are then awarded on a:
(1) Standard Basis
(2) Indemnity Basis
(1) YES unless ‘good reason’ to depart
(2) NO assessed by court in usual way
What are the 2 ways costs will be assessed?
(1) SUMMARY Assessment
(2) DETAILED Assessment
If Costs are ‘SUMMARY Assessed’:
(1) When will costs be decided?
(2) Who will decide costs?
(3) What track does this usually apply to?
(4) What other types of proceedings will this usually apply to?
(1) IMMEDIATELY after Trial
(2) Judge (from trial)
(3) Fast track
(4) Interim applications of 1 DAY OR LESS
If Costs are ‘DETAILED Assessed’:
(1) When will costs be decided?
(2) Who will decide costs?
(3) What track does this usually apply to?
(1) Separate hearing at a LATER DATE
(2) Specialist costs judge
(3) Multi-track
When must a Party comply with a ‘Costs Order’ by?
Within 14 days
On the Intermediate Track, how are costs generally assessed?
Fixed Recoverable Costs (FRC) regime - FIXED amount can be recovered
GENERALLY how are Costs assessed for:
(1) Fast Track
(2) Intermediate Track
(3) Multi-track
(1) SUMMARY assessed
(2) FIXED RECOVERABLE COSTS (FRC) regime
(3) DETAILED assessed
(1) What type of Costs Order can a DEFENDANT apply for if they are concerned they will not be able to recover their costs from the CLAIMANT?
(2) What does it typically involve
‘Security for Costs’ - C pays sum to court
Re ‘Security for Costs’
(1) Who can apply for it?
(2) What is the purpose?
(3) If conditions are satisfied for it, must the court grant?
(1) DEFENDANT only
(2) Ensure D can recover LEGAL COSTS if C loses
(3) NO - DISCRETIONARY
What is the 3 part test of ‘Security for Costs’?
(1)
(2) 1 or more of:
(a)
(b)
(c)
(3)
(1) JUST given all the circumstances (of case)
(2) 1 or more:
(a) C resides OUTSIDE OF JURISDICTION
(b) Reason to believe C UNABLE PAY D COSTS
(c) C taken STEPS make ENFORCEMENT DIFFICULT
(3) Overriding objective
When must a WITH NOTICE application for ‘Security for Costs’ be served on the other party by?
At least 3 CLEAR DAYS pre TRIAL
What Costs order is used to make a 3rd / Non-Party meet the costs?
Non-Party Costs Order
What are 3 examples of when a ‘Non-Party Costs Order’ could be used on a 3rd / Non-Party?
3rd Party:
(1) CONTROLLING (the litigation)
(2) FUNDING (the litigation)
(3) BENEFIT FROM OUTCOME
