Costs Flashcards
Q: Why are costs a significant factor in civil litigation?
A) They determine the jurisdiction of the court
B) They influence a party’s decision to settle or continue litigation
C) They are always reimbursed in full by the losing party
D) They have no impact on litigation strategy
B) They influence a party’s decision to settle or continue litigation
Q: Which CPR rules govern costs in litigation?
A) CPR 25 to 30
B) CPR 44.2 to 44.5
C) CPR 1 to 10
D) CPR 55 to 60
B) CPR 44.2 to 44.5
Q: What is the general rule on costs under CPR 44.2(2)?
A) Each party pays their own costs
B) The losing party pays the successful party’s costs
C) The claimant always pays all costs
D) Costs are always shared equally
B) The losing party pays the successful party’s costs
Q: Under CPR 44.2(1), what discretion does the court have regarding costs?
A) Whether one party should pay the other’s costs
B) How much of the costs should be paid
C) Whether the general rule should apply
D) All of the above
D) All of the above
Q: When assessing costs, the court will ensure:
A) The successful party always recovers 100% of their costs
B) Costs awarded are reasonable and proportionate
C) The losing party must pay full damages plus costs
D) Both parties split costs equally
B) Costs awarded are reasonable and proportionate
Q: Which of the following is NOT considered a litigation cost?
A) Solicitor’s fees
B) Court fees
C) Criminal fines
D) Expert witness fees
C) Criminal fines
Q: What are disbursements in litigation?
A) Fees paid directly to third parties, such as court fees or expert reports
B) The total amount awarded in damages
C) Additional penalties imposed by the court
D) Costs that only the defendant pays
A) Fees paid directly to third parties, such as court fees or expert reports
Q: If a successful party incurs £50,000 in costs but the court allows recovery of only 60%, how much does the losing party pay?
A) £50,000
B) £30,000
C) £20,000
D) Nothing
B) £30,000
Q: Which of the following is NOT a factor the court considers when assessing proportionate costs?
A) The amount in dispute
B) The complexity of the case
C) The solicitor’s hourly rate
D) The conduct of the parties
C) The solicitor’s hourly rate
Q: What does the term “inter partes costs” mean?
A) Costs paid by the court
B) Costs paid by one party to another
C) Costs that cannot be recovered
D) Costs incurred in criminal cases
B) Costs paid by one party to another
Scenario: A claimant wins their case and has incurred £40,000 in costs. The court allows 65% recovery.
How much will the losing party pay?
A) £40,000
B) £26,000
C) £14,000
D) Nothing
B) £26,000
Scenario: A claimant loses their claim and is ordered to pay 60% of the defendant’s costs, which total £30,000.
How much does the claimant owe the defendant?
A) £18,000
B) £30,000
C) £12,000
D) £0
A) £18,000
Scenario: A claimant estimates their own costs at £60,000, but even if they win, they will only recover 50% (£30,000).
What financial decision might this encourage?
A) Settling the case early
B) Filing an appeal before the case is heard
C) Refusing all settlement offers
D) Ignoring legal costs
A) Settling the case early
Scenario: A defendant refuses a reasonable settlement offer and proceeds to trial but loses the case.
What might the court do?
A) Order higher cost payments from the defendant
B) Ignore the refusal and award standard costs
C) Order the claimant to pay more costs
D) Nullify the case
A) Order higher cost payments from the defendant
Scenario: A claimant in a personal injury case hires a medical expert for £2,500. The court finds the cost reasonable.
What is the most likely outcome?
A) The claimant must pay regardless of case outcome
B) The cost is recoverable from the losing party
C) The expert must refund the claimant
D) The cost is ignored
B) The cost is recoverable from the losing party
Scenario: A defendant fails to pay a court-ordered cost award.
What can the winning party do?
A) Seek enforcement actions such as asset seizure
B) Request a criminal penalty
C) Appeal to the Supreme Court
D) Ignore the issue
A) Seek enforcement actions such as asset seizure
Scenario: A party believes the court’s cost award is unfair.
What can they do?
A) Appeal the costs decision
B) Refuse to pay the costs
C) Request a retrial
D) Ignore the order
A) Appeal the costs decision
Scenario: A claimant wins part of their case but loses another significant part.
What may the court decide about costs?
A) Each party pays their own costs
B) The claimant receives partial cost recovery
C) The losing party pays 100% of costs
D) The court ignores costs
B) The claimant receives partial cost recovery
Q: What is the general rule on costs in the Small Claims Track?
A) The losing party pays all of the winner’s costs
B) Each party bears their own costs, except for fixed costs and disbursements
C) The court does not award any costs
D) Costs are always capped at £500
B) Each party bears their own costs, except for fixed costs and disbursements
Q: What is the maximum costs for trial advocacy in a Fast Track case?
A) £5,000
B) £1,500 - £3,000, depending on case complexity
C) £10,000
D) No limit applies
B) £1,500 - £3,000, depending on case complexity
Q: How are costs assessed in Multi-Track cases?
A) Fixed costs apply
B) Costs are assessed by the court based on proportionality and reasonableness
C) The winning party always recovers 100% of costs
D) There are no cost awards in Multi-Track cases
B) Costs are assessed by the court based on proportionality and reasonableness
Q: What must parties do in cases valued at £50,000+ in damages?
A) Submit a costs budget for court approval
B) Automatically receive full costs recovery
C) Claim back all expenses without justification
D) Ignore costs unless ordered by the court
A) Submit a costs budget for court approval
Q: When might a court award indemnity costs instead of standard costs?
A) When a party has behaved unreasonably or dishonestly
B) In every case
C) If the losing party requests indemnity costs
D) If the case involves personal injury
A) When a party has behaved unreasonably or dishonestly
Q: If a defendant rejects a claimant’s Part 36 offer but loses at trial, what cost consequences may apply?
A) The defendant pays higher costs and interest
B) The claimant must pay both sides’ costs
C) The case is dismissed
D) No consequences apply
A) The defendant pays higher costs and interest
Q: What is the general rule on costs for interim applications?
A) The unsuccessful party pays the costs
B) The court defers the cost decision until the end of the case
C) No costs are awarded
D) Costs always go to the claimant
A) The unsuccessful party pays the costs
