Costs II

Question 1

CPR 44.3?

Answer 1

The court will decide whether costs should be on a standard or indemnity basis

Question 2

What will costs never be?

Answer 2

The court will never allow costs to be unreasonable (in incurring and amount)

Question 3

What must standard costs be?

Answer 3

Standard costs must be both (1) reasonable and (2) proportionate ((and not be in doubt of this??))

Question 4

What must indemnity costs be?

Answer 4

Indemnity costs only need to be reasonable

Question 5

What is the usual costs basis?

Answer 5

Assessment on a standard basis (reasonable + proportionate) unless court says otherwise

Question 6

CPR 44.3(5)?

Answer 6

An explanation of factors to consider for proportionality of costs

Question 7

What things should be considered when deciding proportionality of costs?

Answer 7

The sums in issue; value of non-monetary relief; complexity of case; conduct issues; vulnerability of parties; whole case.

Question 8

What must the court have regard to when deciding reasonability of costs?

Answer 8

conduct; value of case; importance; complexity; skill/effort; time spent; circumstances; last approved budget.

Question 9

What must be particularly remembered about indemnity costs?

Answer 9

The BURDEN IS REVERSED- even if questionably reasonable: paying party must prove the costs weren’t reasonable

Question 10

PD44.6?

Answer 10

Clarifies distinction between indemnity and standard costs

Question 11

When are indemnity costs appropriate?

Answer 11

Where conduct of parties or other circumstances are “so out of the norm”

Question 12

What is considered “out of the norm” that can trigger indemnity costs?

Answer 12

Per 44.3.8, “something outside normal and reasonable conduct of proceedings” including morally wrong or exceptional cases.

Question 13

When are interim costs presumed?

Answer 13

Where an order for costs is given subject to a detailed assessment - protects receiving parties from long process