Costs

Question 1

Consequences of a costs management order:

Answer 1

• if costs awarded on a standard basis: budget won’t be departed from unless good reason to do so
• if costs awarded on indemnity basis: costs assessed in the usual way

Question 2

Which tracks do fixed costs apply on?

Answer 2

Fast and intermediate

Question 3

When can higher costs be granted if fixed costs are to be awarded?

Answer 3

In “exceptional circumstances”
OR
Up to 50% increase/decrease if there’s “unreasonable conduct”

Question 4

Procedure for determining costs on a standard basis

Answer 4

1. every item must not be unreasonably incurred, or unreasonable in amount
2. overall figure must be proportionate

Question 5

Procedure for determining costs of an indemnity basis

Answer 5

Each item must not be unreasonably incurred or unreasonable in amount

Question 6

When may an order for security for costs be made?

Answer 6

A. if it’d be just to do so, and
B. a Part 25 condition applies:
- resident outside UK and EU,
- it’s an impecunious company (reason to believe can’t pay costs)
- took steps to make enforcement difficult

Question 7

Formalities of a Part 36 offer

Answer 7

• in writing,
• clear it’s made under Part 36,
• specifies the “relevant period”,
• states which part of the claim it relates to, and if it takes account of any counterclaim

Question 8

Penalties that may be imposed on D if rejects C’s Part 36 offer, and C wins and beats/equals the offer

Answer 8

• additional amount (% of damages),
• enhanced interest on damages,
• costs on indemnity basis/enhanced fixed costs, and
• interest on costs

Question 9

When is a split costs order made?

Answer 9

If C rejects D’s Part 36 offer and wins, but doesn’t beat D’s offer: D pays costs until the end of the relevant period, and C pays them from the end of it until the judgment