Costs Procedure Flashcards
What is the main difference between fixed costs and assessed costs?
A. Fixed costs only apply to multi-track cases
B. Fixed costs require a judge to assess the amount at the end of the hearing
C. Fixed costs are predetermined by the rules, while assessed costs require judicial calculation
D. Assessed costs are only available to defendants
C. Fixed costs are predetermined by the rules, while assessed costs require judicial calculation
Explanation: Fixed costs are set in the Civil Procedure Rules. Assessed costs must be calculated by the court using summary or detailed assessment.
What form is used for statements of costs in summary assessment?
A. N244
B. N1
C. N265
D. N260
D. N260
Explanation: Form N260 is the standard statement of costs form required for summary assessment.
How long does the paying party have to file Points of Dispute after receiving a Notice of Commencement?
A. 14 days
B. 21 days
C. 28 days
D. 30 days
B. 21 days
Explanation: Under CPR 47, the paying party has 21 days to serve Points of Dispute.
Which track types are now subject to fixed recoverable costs as of 1 October 2023?
A. Small claims, fast track, and intermediate track
B. Only fast track
C. Only multi-track
D. Only small claims
A. Small claims, fast track, and intermediate track
Explanation: From October 2023, fixed costs now apply across these tracks (CPR 45).
Amir is involved in a fast-track claim. The trial concludes in half a day. What is the likely method the judge will use to determine costs?
A. The judge will carry out a summary assessment using N260 forms
B. The judge will refer the case to a detailed assessment
C. Costs will automatically be fixed without any assessment
D. The judge will ask the parties to agree costs privately
A. The judge will carry out a summary assessment using N260 forms
Explanation: For fast-track trials that finish within one day, the usual approach is summary assessment.
Francesca wins her personal injury claim. The judge awards her costs subject to detailed assessment. What document must her solicitor serve first on the other side to begin the process?
A. Statement of costs
B. Precedent H
C. Points of Dispute
D. Notice of Commencement and Bill of Costs
D. Notice of Commencement and Bill of Costs
Explanation: This begins the detailed assessment process, as per CPR 47.
The court orders costs to be assessed on the indemnity basis. What does this mean for the receiving party?
A. They can recover all costs, even unreasonable ones
B. They are more likely to recover a higher proportion of their actual legal costs
C. They will recover the full fixed costs set out in CPR 45
D. They must provide evidence of financial hardship
B. They are more likely to recover a higher proportion of their actual legal costs
Explanation: On the indemnity basis, the court resolves doubt in favour of the receiving party and allows all reasonable costs.
A defendant is ordered to pay the claimant’s costs after an interim hearing lasting 30 minutes. What is the most appropriate method of assessing those costs?
A. Fixed costs
B. Summary assessment
C. Detailed assessment
D. No costs are payable for interim hearings
B. Summary assessment
Explanation: For interim applications that last less than one day, summary assessment is usually conducted at the end of the hearing.
If a judge does not state how much is payable at the time of ordering costs, what process follows?
A. Summary assessment is implied
B. Fixed costs apply automatically
C. The parties submit a second N260 form
D. Detailed assessment is used if costs are not agreed
D. Detailed assessment is used if costs are not agreed
Explanation: If the amount is not set, the parties proceed to detailed assessment unless they reach agreement.
What happens if the receiving party fails to file a statement of costs (N260) 24 hours before a summary assessment hearing?
A. The court will automatically order fixed costs
B. The application will be struck out
C. The judge may refuse to carry out a summary assessment and refer to detailed assessment instead
D. The court will award the receiving party 100 percent of their claimed costs
C. The judge may refuse to carry out a summary assessment and refer to detailed assessment instead
Explanation: Filing a statement of costs is essential; without it, the court may decline to assess costs summarily.
