Costs procedure Flashcards
What are fixed costs?
Sometimes the amount one party will need to pay is easier to decide because it is fixed by the rules.
What cases have fixed costs?
From the 1 October 2023, fixed costs apply to small claims, fast and intermediate track claims.
How are fast and intermediate track fixed costs determined?
*In both the fast track and intermediate track there are 4 complexity bands. A case will be assigned to a complexity band when it is allocated to either the fast or intermediate track.
*The complexity band assigned and the stage at which the case is concluded determines the amount of fixed costs that can be recovered by reference to the table 12 in PD45 for fast track cases and table 14 in PD45 for intermediate track cases.
What are assessed costs?
Where costs do no fall under the fixed cost regime the court will need to be involved with the decision and calculation of the amount payable by way of costs from one party to another prior to a costs order being made.
When are assessed costs typically used?
This traditionally occurs when the parties are unable to agree the amount of costs one should pay to the other.
What ae the bases of assessment in relation to assessed costs?
There are two bases of assessment: standard basis and indemnity basis.
There are also two alternative procedures for assessment: summary and detailed assessment.
What is the summary assessment procedure?
This involves the court determining the amount payable by way of costs immediately at the end of a hearing.
*The parties must prepare statements of costs (preferably using N260)
*And file and serve them on each party not less than 24 hours before the time fixed for the hearing.
*Court will review these and hear a short submission from the parties.
Unless there is a good reason not to do so, this procedure should be used in fast track cases at the end of the trial an at the end of a hearing of an interim application or matter which has not lasted more than a day.
What is the detailed assessment procedure?
More complex procedure for determining the amount of a party’s costs to be paid. This is appropriate in most other cases where costs fall to be assessed.
- The court, on deciding that one party should pay the other’s costs, orders they be subject to detailed assessment.
- To commence detailed assessment proceedings, the receiving party serves a notice of commencement and a copy of its bill of costs on the paying party.
- Points of dispute in relation to any item in the bill of costs should then be served on the receiving party by the paying party within 21 days of service of the notice of commencement.
- If the parties cannot reach an agreement, the receiving party should then file a request for a detailed assessment hearing at which a costs officer will determine the sum of money to be paid.
What role does the parties respective budgets and costs management procedure.
Any consideration of costs orders made by the court must include, where relevant, role played by the parties’ respective budgets and costs management procedure.
