Disputes (Case Management) Flashcards
What are Solicitor-Client Costs?
Costs payable by client to solicitor under the contract.
If a party is successful in litigation, they will seek an order that the other party pay their legal costs. However, there is usually a shortfall between the sum recovered and the sum payable to the solicitor.
What are Inter-Party Costs?
Actual figure for costs **awarded by the court **which one party has to pay the other party.
What are Non-Party Costs?
The court has jurisdiction to award costs against a non-party, such as a funder funding the litigation.
What is the general rule for costs in litigation?
Costs follow the event - the unsuccessful party pays the costs of the successful party per CPR 44.2(2)(a), although the court has complete discretion.
What does the Basic Assessment Rule require when the court makes a cost order?
The court must specify the basis of the assessment, which can be Standard Basis or Indemnity Basis.
What is the Standard Basis of cost recovery?
- Proportionate and reasonable in amount
- Any doubt resolved in favour of the paying party
Common for only 60% legal costs to be recovered by the receiving party from the paying party
What is the Indemnity Basis of cost recovery?
- Costs must have been reasonably incurred and reasonable in amount,
- Any doubt resolved in favor of the receiving party.
Commonly, 70-80% of legal costs are recovered by the receiving party from the paying party
What is the time frame for complying with an order for payment of costs?
Unless otherwise ordered by the court, a party must comply within 14 days of the judgment or order or the date of the certificate stating the amount.
What are Fixed Costs in litigation?
Fixed costs apply to small claims, fast, and intermediate track cases, with complexity bands determining the amount of fixed costs to be recovered.
What are Assessed Costs?
Costs that require the court’s involvement to decide and calculate the amount payable, through Summary Assessment or Detailed Assessment.
What is Summary Assessment?
A procedure where the court decides costs at the end of the hearing, requiring parties to prepare and file a statement of costs (NS60 Form) less than 24 hours before the hearing.
What is Detailed Assessment?
When the court orders detailed assessment if the costs are not agreed, the receiving party serves a notice of commencement and a bill on the paying party.
Points in dispute should be served within 21 days. If no agreement is reached, they can request a costs hearing.
What are Interim Costs?
Costs considered at the end of any interim hearing; the court decides by whom and to what extent costs are to be paid.
What does ‘Costs in any event’ mean?
The party in whose favor the interim order is made is awarded costs of that hearing, regardless of the trial outcome.
Remember, in any event means ‘regardless of anything else’
What does ‘Costs in the case’ mean?
The party who eventually gets costs at trial will recover costs of the interim hearing.
What are Costs reserved?
The decision on costs is delayed to a later occasion.
What are ‘Costs thrown away’?
If a judgment or order is set aside, the party in whose favor this cost order is made is entitled to the costs incurred.
What does Qualified One Way Cost Shifting (QOCS) entail?
QOCS restricts cost orders against claimants who lose in personal injury or death claims, limiting recovery to the level of damages and interest awarded. This is usually £0 since they lose.
