DR IX Costs and Enforcement of Money Judgement

Question 1

Overriding objective for according costs

Answer 1

the purpose of overriding objective is to ensure that parties are on an equal footing, to save expense, and to deal with claims in a proportionate manner

Question 2

General rule for according costs

Answer 2

That Loser pays the winner’s costs.

Question 3

The court may depart from the usual costs rule where there has been:
(6)

PAWNER

Answer 3

Failure to comply with a pre-action protocol;
Failure to negotiate
A refusal to engage in ADR
Rejection of a Part 36 offer
Exaggeration
A failure to succeed on the whole of the claim

Question 4

Explain the indemnity principle

Answer 4

The indemnity principle states that a party cannot recover more from an opponent than they are liable to pay their own legal representative. The limit is actual costs.

Question 5

Explain the Standard basis on costs

Answer 5

The standard basis is where the court allows only proportionate costs and exercises any doubt in favour of the paying party

Question 6

Explain the indemnity basis

Answer 6

The indeminity basis is used when the court has doubts in the receiving party’s favour. The court does not consider proportionality. The paying party can dispute that the costs on the argument that it was unreasonable for the winner’s solicitors to do the work at all.

Question 7

Requirement for drafting a budget to receive costs

Answer 7

The parties must file their budget with the Directions Questionnaire if the case is worth less than 50000 or

if the value is 50,000 or more, 21 days before the first Case Management Conference.

no budget no costs awarded but court fees.

Question 8

Is there a small percentage leeway from the costs budget determined at CCMC

Answer 8

the costs budget should not be departed from the Costs management order but there is a 20% at most leeway.

Question 9

Explain interpartes costs

Answer 9

The judge can make an order for inter-partes costs, normally following the principle that the loser pays the winner’s costs.

Interpartes simply means a party in the claim is awarded costs against another party. the term is used to distinguish these from a party’s own costs.

Question 10

How does a summary assessment of costs be processed at court for interim application or low value case

Answer 10

a statement of costs must be filed by the parties 24 hours before a hearing or two days before a trial, and the judge will make a summary assessment of the costs payable at the conclusion of the hearing.

The court will normally orders the costs to be paid within 14 days. The receiving party is entitled to interest.

Question 11

costs arrangement for small claims track

Answer 11

the court will generally make no order for payment of legal costs. Exceptions:

the amount payable in lower value road traffic accident claims is limited to fixed recoverable costs

Fixed costs apply in small claims cases or money claims;

Costs recovery in cases proceeding thorugh the portal for low-value road traffic and employer’s liability claims are subject to fixed amounts; and

Fixed trial costs apply in fast track claims.

Question 12

Define bill of costs and points of dispute

Answer 12

within 3 months aftering handing down of judgement or order, the receiving party must serve a bill of costs.

within 21 days being served the bills of costs the paying party can issue points of dispute or else the receiving party can apply for a default costs certificate.

Question 13

Define Provisional Assessement

situation provisional assessment will not be carried

Answer 13

A district Judge will provisionally assess if the bill of costs is reasonable and indicate the amount of costs the judge would be prepared to sanction

There will be no provisional assessment where the costs claimed exceed £75,000.

It can be challenged with in 21 days and a detailed assessment hearing will be hosted

Question 14

Time for payment for cost order

Answer 14

within in 14 days of the final costs certificate.

Question 15

Definition of security for costs

Answer 15

In certain situations, a defendant may apply for a security for costs order if they are concerned that the claimant will not be able to pay the D’s costs if D wins.

This is a type of interim application. if granted, C must pay money into court or provide a bond. Court will consider if C will be able to pay in granting security for costs

Question 16

Situations where a security for costs order can be made.

Answer 16

C is a resident outside the jurisdiction
C is a company and there is a reason to believe they can pay
C changed address with a view to evade the consequence of litigation
C fails to provide an address/provides an incorrect address
C is acting as a nominal C (someone is suing for the benefit of another person)
C has taken steps in relation to assets that would make it difficult to enforce an order for costs. (moving assets)

Question 17

If a non-party funds a litigtion for solely or substantially for his own beneift, can he be liaible for costs

Answer 17

Yes, a non-party who promotes and finds proceedings may be ordered with a non-party costs order but the costs are at court’s discretion. a non-party must be a C in this situation.

the non party must be added as a party to the proceedings for the purposes of costs only, he must be given an opportiunity to attend a hearing for the matter.

Question 18

In general, C does not pay for D’s costs if the claim fails, unless:

Answer 18

For personal injury csaes.

The claim is fundamentally dishonest
The claim was made for the financial benefit of another
The claim was struck out for disclosing no cause of action or abuse

Question 19

Define Qualified one-way costs shifting protection (QCOS)

Answer 19

The protection where for personal injury case, C does not have to pay D’s costs.

The protection may be lost if C did not issue proceedings with good faith (dishonesty, for other person’s beneift, no merit)

QCOS will disappear if C refuses a part 36 settlement and did not beat the offer at judgement.

Question 20

Define wasted costs orders

Answer 20

The court can make a wasted costs order if a solicitor conduct has been improper, unresonable, or negligent.

the solicitor must advise the client within seven days of the court making the order.

Question 21

High court judgement interest and county court judgement interest for value £5,000 or over

Answer 21

8%

Question 22

Define judgement creditor and judgement debtor

Answer 22

The party that has been awarded damages or won the case and conversely the unsuccessful party.

Question 23

The value threshold for enforcement

Answer 23

£600

Question 24

Define writ of control and warrant of control

Answer 24

for an amount over £600 obtained from a judgement, the judgement creditor can file a request to execute the judgement, the court will then issue a write of control to the HC enforcement officer

The warrant of control is issued by the county court.

Question 25

The procedure of taking control of goods

Answer 25

The creditor must give the debtor no less than seven days’ notice of the creditor’s intention to take control of goods

the enforcement must take place within 12 months. the agent can only enter the stated address. Goods seized must be sold within 7 days and proceeds must be used to discharged enforcement costs and debt.

Question 26

Discuss charging order on land for discharging debts

Answer 26

A creditor may obtain a charge on the property, which will rank as an equitable mortgage: it gives the creditor the right to apply for an order for sale. This can apply even where the land is in joint ownerhsip.

Question 27

Discuss attachment of earnings

Answer 27

If the debtor is in regular employment, then an attachment of earnings order compels an employer to make regular deductions from the debtor’s earnings and then pay them into court.