DR 2 - Costs Flashcards
What must a party to litigation consider regarding costs?
- Funding their own costs
- Planning to pay the opponent’s costs if ordered
- Realising that even a successful party usually recovers only part of their costs, typically around 60%.
Special rules apply for personal injury claims regarding costs.
What is the court’s jurisdiction concerning costs?
The court has full power to determine by whom and to what extent costs of proceedings are to be paid.
This includes costs prior to proceedings, such as compliance with pre-action protocols.
What are solicitor-client costs?
The costs payable by the client to the solicitor under the contract of retainer.
Clients are primarily responsible for their solicitor’s costs and may owe the balance even if they win.
What are inter-party costs?
Costs awarded by the court which one party has to pay the other party.
What are non-party costs?
Costs awarded against a non-party, commonly a third-party funder.
The court considers factors like justice and control over the proceedings when deciding on non-party costs.
What does the ‘costs follow the event’ rule state?
The unsuccessful party pays the costs of the successful party.
What are the two bases for awarding costs?
- Standard basis
- Indemnity basis
How are costs calculated on a standard basis?
The court will allow costs which:
* Have been proportionately and reasonably incurred; and
* Are proportionate and reasonable in the amount
* Any doubt is resolved in favour of the paying party
How are costs calculated on an indemnity basis?
The court will allow costs which:
* Have been reasonably incurred; and
* Are reasonable
* Any doubt is resolved in favour of the receiving party
What is meant by costs being proportionate?
Costs reasonably relate to:
* The sums in issue
* The value of non-monetary relief
* The complexity of litigation
* Additional work generated by the paying party
* Wider factors like reputation or public importance.
What is the time frame for complying with a costs order?
A party must comply within 14 days of:
* The date of the judgment if it states the amount
* The date of the certificate stating the amount
* Any other date specified by the court.
What are fixed costs?
Costs set by the rules that apply in situations like uncontested disputes, enforcement proceedings, and small claims.
What are assessed costs?
Costs assessed when parties cannot agree on an amount, using standard or indemnity basis.
What is summary assessment?
A procedure where the court decides costs immediately after a hearing.
What occurs during detailed assessment of costs?
The court orders detailed assessment if costs are not agreed, and the receiving party serves a notice of commencement and a bill of costs.
What is an interim costs order?
A cost order made at the end of an interim hearing regarding who pays costs and to what extent.
What does ‘costs in any event’ mean?
The party in whose favour this order is made is awarded its costs of the interim hearing regardless of who wins at trial.
What are ‘costs reserved’?
The decision on who pays the costs of the interim hearing is postponed to a later occasion.
What are ‘costs thrown away’?
Costs incurred as a result of a judgment or order that is set aside.
What does ‘costs of and caused by’ entail?
A party must pay the costs resulting from their actions, such as costs incurred by the defendant due to a claimant amending their particulars of claim.
What does ‘no order for costs’ indicate?
Each party will bear its own costs of the hearing.
