Unit 17 and 18 - Costs Flashcards
TRUE or FALSE. The court has discretion as to whether costs are payable by one party to another.
True
TRUE or FALSE. The court has discretion as to the amount of costs.
True
TRUE or FALSE. The court has discretion as to when costs are to be paid.
True
True or False. An unsuccessful party will always be ordered to pay the costs of the successful party.
False. The court may make a different order.
The general rule as to who pays costs does not apply in:
(a) proceedings in the Court of Appeal on an application or appeal made in connection with proceedings in the Family Division; or
(b) proceedings in the Court of Appeal from a judgment, direction, decision or order given or made in probate proceedings or family proceedings.
What circumstances will the court have regard to when deciding the costs order to make?
All the circumstances, including:
(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.
Under CPR 44.2(4), conduct of parties includes:
(a) conduct before, as well as during, the proceedings and in particular the extent to which the parties followed the Practice Direction—Pre-Action Conduct or any relevant pre-action protocol;
(b) whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue;
(c) the manner in which a party has pursued or defended its case or a particular allegation or issue; and
(d) whether a claimant who has succeeded in the claim, in whole or in part, exaggerated its claim.
What orders for costs can a court make?
Orders that a party must pay:
(a) a proportion of another party’s costs;
(b) a stated amount in respect of another party’s costs;
(c) costs from or until a certain date only;
(d) costs incurred before proceedings have begun;
(e) costs relating to particular steps taken in the proceedings;
(f) costs relating only to a distinct part of the proceedings; and
(g) interest on costs from or until a certain date, including a date before judgment.
On what bases will the court assess costs?
Standard basis;
Indemnity basis.
TRUE or FALSE. the court may allow costs whcih have been unreasonably incurred/unreasonable in amount.
FALSE.
TRUE or FALSE. Standard basis means the court will only allow proportionate costs.
TRUE.
TRUE or FALSE> Disproportionate costs, under standard basis, cannot be disallowed or reduced if reasonably or necesasrily incurred.
FALSE. They can still be disallowed or reduced.
TRUE or FALSE. Under the standard basis, the court will resolve doubts as to reasonableness/proportionality of costs in favour of the paying party.
TRUE.
TRUE or FALSE. Under the indemnity basis, the court will resolve doubts as to reasonable amounts/incursion of costs in favour of paying party.
FALSE. In favour of receiving party.
Costs incurred are proportionate if they bear a reasonable relationship to:
(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; and
(e) any wider factors involved in the proceedings, such as reputation or public importance.
Under the standard basis, the court will have regard to all the circumstances of the case in deciding if costs were…
(i) proportionately and reasonably incurred; or
(ii) proportionate and reasonable in amount, or
Under the indemnity basis, the court will have regard to all the cirucumstances of the case in deciding if costs were…
(i) unreasonably incurred; or
(ii) unreasonable in amount.
In deciding the amount of costs, the court will have regard to which factors?
(a) the conduct of all the parties, including in particular—
(i) conduct before, as well as during, the proceedings; and
(ii) the efforts made, if any, before and during the proceedings in order to try to resolve the dispute;
(b) the amount or value of any money or property involved;
(c) the importance of the matter to all the parties;
(d) the particular complexity of the matter or the difficulty or novelty of the questions raised;
(e) the skill, effort, specialised knowledge and responsibility involved;
(f) the time spent on the case;
(g) the place where and the circumstances in which work or any part of it was done; and
(h) the receiving party’s last approved or agreed budget.
TRUE or FALSE. Where the court orders a party to pay costs (other than fixed) to another party, it may only make a summary assessment of the costs.
FALSE. The court may also order a detailed assessment by a costs officer, unless a rule, PD or other enactment says otherwise.
A party must comply with an order for the payment of costs with X days of the date of the judgment or order if it states the amount of those costs.
14 days (or any other date specified by the court).
Where a party or legal rep fails to comply with a rule, PD or order, or otherwise behaves unreasonably or improperly during or before proceedings, the court can make an order to:
Where such an order is made against a party which is not present, how long does the legal rep have to notify the party?
(a) disallow all or part of the costs which are being assessed; or
(b) order the party at fault or that party’s legal representative to pay costs which that party or legal representative has caused any other party to incur.
7 days after the rep receives notice of the order.
QOCS applies to claims for damages for:
a) for personal injuries;
(b) under the Fatal Accidents Act 1976; or
(c) which arises out of death or personal injury and survives for the benefit of an estate by virtue of section 1(1) of the Law Reform (Miscellaneous Provisions) Act 1934,
but does not apply to applications pursuant to section 33 of the Senior Courts Act 1981 or section 52 of the County Courts Act 1984 (applications for pre-action disclosure), or where rule 44.17 applies.
Except in relation to CPR 44.15, orders for costs against C can be enforced without court permission, but only to the extent that…
…the aggregate amount in money terms of such orders does not exceed the aggregate amount in money terms of any orders for damages and interest made in favour of C.
Under CPR 44.15, when can orders for costs against C be enforced w/o court permission?
When proceedings have been struck out on the grounds that…
a) the claimant has disclosed no reasonable grounds for bringing the proceedings;
(b) the proceedings are an abuse of the court’s process; or
(c) the conduct of—
(i) the claimant; or
(ii) a person acting on the claimant’s behalf and with the claimant’s knowledge of such conduct,
is likely to obstruct the just disposal of the proceedings.
When must permission of court be granted for QOCS?
where the claim is found on the balance of probabilities to be fundamentally dishonest;
where—
(a) the proceedings include a claim which is made for the financial benefit of a person other than the claimant or a dependant within the meaning of section 1(3) of the Fatal Accidents Act 1976 (other than a claim in respect of the gratuitous provision of care, earnings paid by an employer or medical expenses); or
(b) a claim is made for the benefit of the claimant other than a claim to which this Section applies.
What must a receiving party do where there is 20% or more difference between costs claimed on asssessment and costs in their budget?
Provide a statement of reason for difference with the bill of costs.
If a paying party claims to have reasonably relied on R’s budget and wishes to use it to dispute the reasonableness/proportionality of costs claimed, what must they do?
Serve a statement setting out this case in their points of dispute.
What can the court do where it appears that a paying party reasonably relied on the budget filed?
they can restrict the recoverable costs to a reasonable sum in the light of that reliance.
What is the effect of a costs order?
The party in whose favour the order is made is entitled to that party’s costs in respect of the part of the proceedings to which the order relates, whatever other costs orders are made in the proceedings.
What is the effect of a costs in the case order?
The party in whose favour the court makes an order for costs at the end of the proceedings is entitled to that party’s costs of the part of the proceedings to which the order relates.
What is the effect of a costs reserved order?
The decision about costs is deferred to a later occasion, but if no later order is made the costs will be costs in the case.
What is the effect of a costs in case/application?
If the party in whose favour the costs order is made is awarded costs at the end of the proceedings, that party is entitled to that party’s costs of the part of the proceedings to which the order relates. If any other party is awarded costs at the end of the proceedings, the party in whose favour the final costs order is made is not liable to pay the costs of any other party in respect of the part of the proceedings to which the order relates.
What is the effect of costs thrown away?
Where, for example, a judgment or order is set aside, the party in whose favour the costs order is made is entitled to the costs which have been incurred as a consequence. This includes the costs of —preparing for and attending any hearing at which the judgment or order which has been set aside was made; preparing for and attending any hearing to set aside the judgment or order in question; preparing for and attending any hearing at which the court orders the proceedings or the part in question to be adjourned; any steps taken to enforce a judgment or order which has subsequently been set aside.
What is the effect of a costs of and caused by order?
Where, for example, the court makes this order on an application to amend a statement of case, the party in whose favour the costs order is made is entitled to the costs of preparing for and attending the application and the costs of any consequential amendment to his own statement of case.
What is the effect of a costs here and below order?
The party in whose favour the costs order is made is entitled not only to that party’s costs in respect of the proceedings in which the court makes the order but also to that party’s costs of the proceedings in any lower court. In the case of an appeal from a Divisional Court the party is not entitled to any costs incurred in any court below the Divisional Court.
What is the effect of no order as to costs?
Each party is to bear that party’s own costs of the part of the proceedings to which the order relates whatever costs order the court makes at the end of the proceedings.
Generally, a cout should make a summary assessment of costs
(a) at the conclusion of the trial of a case which has been dealt with on the fast track, in which case the order will deal with the costs of the whole claim; and
(b) at the conclusion of any other hearing, which has lasted not more than one day, in which case the order will deal with the costs of the application or matter to which the hearing related. If this hearing disposes of the claim, the order may deal with the costs of the whole claim,
unless there is good reason not to do so
When should a detailed assessment of costs be carried out?
The general rule is that the costs of any proceedings or any part of the proceedings are not to be assessed by the detailed procedure until the conclusion of the proceedings, but the court may order them to be assessed immediately.
TRUE or FALSE. There are two bases for costs: the ‘standard basis’ and the ‘indemnity basis’. In either case the court will not allow costs which have been unreasonably incurred or which are unreasonable in amount.
TRUE.
TRUE or FALSE. where the amount of costs is to be assessed on the standard basis, the court will (a) only allow costs which are proportionate to the matters in issue. Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred; and (b) resolve any doubt which it may have as to whether costs were reasonably and proportionately incurred or were reasonable and proportionate in amount in favour of the paying party?
TRUE.
TRUE or FALSE. where the amount of costs is to be assessed on the indemnity basis, the court will resolve any doubt which it may have as to whether costs were proportionately incurred or were proportionate in amount in favour of the receiving party?
FALSE, the proportionality test does NOT APPLY to indemnity costs. Any doubt of reasonableness will be resolved in favour of receiving party.
TRUE or FALSE. Costs budgets must be filed and exchanged in all Part 7 and Part 8 claims.
FALSE.
TRUE or FALSE. Costs budgets must be filed and exchanged in all Multi Track Part 7 claims
FALSE.
TRUE or FALSE. Costs budgets must be filed and exchanged in all Multi Track Part 7 claims with a value under £10 million.
TRUE.
TRUE or FALSE. Costs budgets must be filed and exchanged in all Multi Track Part 7 and Part 8 claims with a value under £10 million.
FALSE.
