Costs And Funding Flashcards
General rule
Winner pay’s the loser’s costs
How are costs generally dealt with on the small claims track?
Generally limited to fixed commencement costs and third party costs such as courts fees and experts fees.
How are costs generally dealt with on the fast track?
Summarily assessment (based on a statement of costs provided to them at least 24 hours in advance of the hearing or trial).
How are costs generally dealt with on the multi-track?
Generally subject to a detailed assessment (amount of costs is decided by the court on the basis of a detailed bill of costs
What procedure do the parties need to follow if the court orders a detailed assessment?
Party whose favour the costs have been made must serve the paying party a notice of commencement within 3 months of the judgement or order
The paying party must then serve any points of dispute within 21 days - if agreed or minor points disagreed they can apply for default costs certificate. If entirely disagreed the receiving party must serve any reply within a further 21 days
- the paying part must then file a request for a hearing within 3 months of the expiry of the initial 3 month period
What happens if a request for an assessment hearing is made to the court?
If amount is less than £75k the court will carry out a provisional assessment where the judge will consider the documents submitted by the parties without a hearing and without parties present
If more than £75k then matter will proceed to a hearing in front of a Costs Judge or District Judge
What is a costs budget?
Provides a reasonable and proportionate estimate of costs which the party is intending to incur throughout proceedings.
When must a costs budget be filed
At the same time at the directions questionnaire if less than £50k or 21 days before the CMC if more
Can a costs budget be revised?
Yes with agreement between parties or approval from the court. If it is not approved, costs can still be incurred they are just unlikely to be recovered from the other side.
What happens if someone fails to file their costs budget on time?
The party will be limited to recovering court fees only
How does assessment on a standard basis operate?
Court will consider every item of costs claimed and decide if they were
Proportionately and reasonable incurred
Proportionate and reasonable in amount
How does an assessment on an indemnity basis operate?
The court will look at whether costs were
- reasonably incurred;
- reasonable in amount.
When can a non- party costs order be made?
Where a third party is:
- substantially controlling the course of litigation
- stands to benefit from the successful outcome of proceedings
Wouldn’t apply to a friend or family member who simply funds proceedings and has no interest in the outcome.
What are the requirements for a valid Part 36 offer
It must be in writing
It must be clear that it is made pursuant to Part 36
It must state whether it relates to the whole or part of the claim
It must state whether it includes any counterclaim
It must state a relevant period
What happens if C makes an offer and the offer is accepted during the relevant period?
D will pay the C’s costs to the date of the notice of acceptance on the standard basis.
