Costs basics

Question 1

What happens if a judge does not make a costs order?

Answer 1

Each party pays their own costs

Question 2

What are the three discretions the court has when determining costs?

Answer 2

Whether costs are payable by one party to another

the amount of those costs and

when they are to be paid

Question 3

What are the general rules associated with costs payable by one person to another?

Answer 3

Loser pays but court has discretion

the matters the court will consider is the conduct of the parties and whether a party has succeeded on only some issues and parts of the claim

Question 4

What are the different basis of assessments for awarding costs?

Answer 4

Standard basis

and indemnity basis

Question 5

What is the standard costs basis

Answer 5

the court will allow costs which are

proportionately and reasonably incurred and

are proportionate and reasonable in amount

any doubt is resolved in favour of the paying party

usually 60% of costs is recovered

Question 6

What is the indemnity cost basis?

Answer 6

the court will allow costs which

have been reasonably incurred and

are reasonable in amount

Any doubt is resolved in favour of the receiving party

70-80% of costs is recovered

usually awarded where there is some element of a party’s conduct of a case which deserves some mark of disapproval

Question 7

What does it mean for costs to be proportionate?

Answer 7

Must relate to the overriding objective

they can be proportionate:
- sums in issue to the proceedings
- value of any non monetary relief in issue in the proceedings
- complexity of the litigation
- any additional work generated by the conduct of the parties
- reputation or public importance

Question 8

What is the time period for complying with a court order for costs?

Answer 8

unless the order states otherwise, a party must comply with an order within 14 days of:

• the date of the judgement or order of it states the amount of costs
• if the amount of those costs is decided later then the date of the certificate which states the amount or
• qualified one way costs shifting

Question 9

What is qualified one way costs shifting?

Answer 9

regime for the recovery of costs between parties in proceedings involving claims for damages in respect of death and personal injury

Restricts D’s ability to enforce a costs order against C