Part 44 - Costs

Question 1

Under rule 44.2 the court has discretion as to:

Answer 1

whether costs are payable by one party to another;

the amount of those costs;

and

when they are to be paid.

Question 2

What does the court take into account when deciding to award costs?

Answer 2

(a) the conduct of all the parties;

(b) whether a party has succeeded on part of its case, even if that party has not been wholly successful; and

(c) any admissible offer to settle made by a party which is drawn to the court’s attention, and which is not an offer to which costs consequences under Part 36 apply.

Question 3

Under rule 44.2 the court has discretion to award costs and order that a party pay:

Answer 3

• a proportion of another party’s costs;
• a stated amount in respect of another party’s costs;
• costs from or until a certain date only;
• costs incurred before proceedings have begun;
• costs relating to particular steps taken in the proceedings;
• costs relating only to a distinct part of the proceedings; and
• interest on costs from or until a certain date, including a date before judgment.

Question 4

How are costs assessed?

Answer 4

1. Standard Basis
2. Indemnity basis

The court will not in either case allow costs which have been unreasonably incurred or are unreasonable in amount.

Question 5

Costs assessed on the Standard basis are allowable where:

Answer 5

The costs are proportionate to the matter in issue.

The court may reduce or disallow disproportionate costs.

Question 6

What basis are costs assessed where the court is silent on the matter?

Answer 6

Where an order for costs is made without indicating the basis, then by default it will be on the standard basis.

Question 7

Under rule 44.3, costs are proportionate where:

Answer 7

a) the sums in issue in the proceedings;

b) the value of any non-monetary relief in issue in the proceedings;

c) the complexity of the litigation;

d) any additional work generated by the conduct of the paying party,

e) any wider factors involved in the proceedings, such as reputation or public importance; and

f) any additional work undertaken or expense incurred due to the vulnerability of a party or any witness.

Question 8

What factors does the court consider when assessing costs on a STANDARD basis?

Answer 8

The are proportionate and reasonably incurred;

or

proportionate and reasonable in amount

Question 9

What factors does the court consider when assessing costs on a INDEMNITY basis?

Answer 9

If the costs were

unreasonably incurred; or

unreasonable in amount.