Costs Flashcards
What is the general rule regarding litigation costs under CPR 44.2(2)(a)?
The unsuccessful party pays the costs of the successful party.
What types of litigation costs are commonly encountered?
Solicitor-client costs, inter-party costs, and non-party costs.
What are solicitor-client costs?
Costs payable by the client to the solicitor under the contract of retainer.
What is meant by inter-party costs?
Costs awarded by the court which one party has to pay to another.
What is the court’s power regarding non-party costs?
The court can order a non-party who funds or controls litigation to pay costs if it is just.
What are the two bases of assessment for costs under CPR 44.3?
Standard basis and indemnity basis.
What is the standard basis for assessing costs?
Costs must be proportionately and reasonably incurred; doubts resolved in favor of the paying party.
What is the indemnity basis for assessing costs?
Costs must be reasonably incurred and reasonable in amount; doubts resolved in favor of the receiving party.
What is the indemnity principle in relation to costs?
A party cannot recover more in costs from the opponent than it is liable to its own solicitor.
What is the usual time for complying with an order for costs under CPR 44.7?
14 days from the date of judgment/order or date of certificate if assessed later.
What factors influence whether the court departs from the general rule on costs?
Parties’ conduct, success on issues, and offers to settle or engage in ADR.
What are the criteria for proportionate costs under CPR 44.3(5)?
Sums in issue, value of non-monetary relief, complexity, conduct, and wider factors.
What is the Qualified One Way Costs Shifting (QOCS) regime?
A regime limiting defendants’ ability to enforce costs orders against claimants in personal injury and death claims.
What does the court consider under CPR 44.4(3) when deciding the amount of costs?
All circumstances of the case, including conduct, complexity, location, and the last approved/agreed budget.
What happens if a judge makes no order as to costs?
Each party pays its own costs.
What are fixed costs under CPR?
Fixed costs are amounts predetermined by rules (CPR 45) and are recoverable without the court having to assess them. They apply to all small claims (CPR 27.14), fast track and intermediate track cases from 1 October 2023.
What determines the amount of fixed costs recoverable in fast and intermediate track cases?
The complexity band assigned (under CPR 26.15 and 16) and the stage at which the case is concluded determine the fixed costs, as detailed in PD45 Tables 12 and 14.
When is summary assessment of costs appropriate?
Summary assessment is appropriate in fast track trials and interim hearings lasting no more than a day.
What must parties file before a summary assessment?
Parties must prepare statements of costs (preferably using form N260) and file and serve them at least 24 hours before the hearing (44 PD 9.5(4)(b)).
What is detailed assessment?
Detailed assessment is a complex procedure where costs are assessed by the court when not agreed upon. It involves serving a notice of commencement and bill of costs, exchange of points of dispute, and possibly a detailed assessment hearing.
What rule governs the process for detailed assessment?
CPR 47 and the supporting 47 PD govern the process for detailed assessment.
What is a ‘costs in any event’ order?
It awards the interim hearing costs to the party in whose favour it is made, regardless of who wins at trial.
What does ‘costs in the case’ mean?
The party who wins at trial recovers their costs of the interim hearing.
When might a judge make a ‘costs reserved’ order?
When the court defers the decision about who should pay the costs of the interim hearing to a later occasion.
