W5 Flashcards
When does the court generally make a decision on costs in litigation?
The court generally makes a decision on costs at the conclusion of an interim application or at the conclusion of the trial.
What are the two perspectives from which a client is likely to be concerned about costs in litigation?
A client is likely to be concerned about costs from two perspectives: firstly, the costs they will incur in preparing their own case, and secondly, the risk of being ordered to pay an opponent’s costs.
What are the two ways the court can decide the precise amount of costs in litigation?
Once the court has determined that one party should pay something to the other party by way of costs, it can decide the precise amount of costs through either a more simple procedure called summary assessment or the more complex ‘detailed assessment’.
What are interim costs orders and when are they exercised?
Interim costs orders are specific types of orders that are only available when determining costs following an interim hearing. They are exercised by the court to determine the costs of the interim proceedings.
What is the general rule regarding costs recovery in litigation?
The general rule on costs recovery is that the loser pays the winner’s costs. However, the court has complete discretion in determining costs and can depart from the general rule based on various factors.
What factors are taken into account when deciding the amount of costs in a case?
In deciding the amount of costs, the court will take into account all the circumstances of the case, including the conduct of the parties, the complexity of the matter, the place and circumstances of the work, and the receiving party’s last approved or agreed budget.
What is the time frame for complying with an order for costs?
Unless the court orders otherwise, a party must comply with an order for the payment of costs within 14 days of the date of the judgment or order if it states the amount of costs. If the amount of costs is decided later, the party must comply within 14 days of the date of the certificate which states the amount.
What is qualified one way costs shifting (QOCS) and what does it restrict?
Qualified one way costs shifting (QOCS) is the regime for the recovery of costs between parties in proceedings involving claims for damages in respect of death and personal injury. It restricts the defendant’s ability to enforce a costs order against the claimant.
What is the purpose of budgets in the court’s costs management process?
Budgets are part of the court’s costs management process and help in assessing the actual amount of costs. They are taken into account along with other circumstances of the case, such as the conduct of the parties, the complexity of the matter, and the place and circumstances of the work.
What does the qualified one way costs shifting (QOCS) regime apply to?
The qualified one way costs shifting (QOCS) regime applies to proceedings involving claims for damages in respect of death and personal injury.
What are fixed costs and when do they apply?
Fixed costs are specific amounts that are recoverable by one party from another in certain circumstances in litigation. They generally apply to uncontested disputes, enforcement proceedings, small claims, and certain specialist areas. The sum awarded as fixed costs will be as set out in the Civil Procedure Rules (CPR), unless the court orders otherwise.
When does assessed costs come into play and how is it determined?
Assessed costs come into play when costs do not fall under the fixed costs regime. The court needs to be involved in deciding and calculating the amount payable by one party to another. Assessment of costs generally occurs when the parties are unable to agree on the amount. The court uses either summary assessment or detailed assessment to determine the sum to be paid.
What is the difference between summary assessment and detailed assessment?
Summary assessment involves the court determining the amount payable by way of costs immediately at the end of a hearing. It is used in fast track proceedings and cases where a hearing has lasted no more than a day. Detailed assessment is a more complex procedure for determining the amount of a party’s costs to be paid. It involves serving a notice of commencement and a bill of costs, followed by points of dispute and a hearing with a costs officer.
How do the parties’ budgets and costs management procedure impact the assessment of costs?
The parties’ budgets and the costs management procedure can have an impact on the assessment of costs, even if a costs management order was not made. They are considered when determining costs orders made by the court.
What types of interim costs orders can be made and when are they appropriate?
The types of interim costs orders that can be made include costs in any event (and summary assessment of costs), costs in the case, costs reserved, costs thrown away, costs of and caused by, costs here and below, and no order for costs. These orders are made at an interim stage and their appropriateness depends on the specific circumstances of the case.
What is the general rule regarding costs in litigation?
The general rule is that the unsuccessful party pays the successful party’s costs. However, the court will rarely allow a party to recover all the costs incurred. The court will usually only allow recovery of costs that are reasonably and proportionately incurred and reasonable and proportionate in amount.
When does the court carry out the quantification process for costs?
The court carries out the quantification process for costs immediately following an interim hearing of one day or less, or following a fast-track trial. This process is known as summary assessment.
What factors might influence the court’s decision on costs in a legal case?
The court has a broad discretion to decide whether to order costs to be paid, how much, and when. The court may consider factors such as poor conduct, raising unreasonable arguments, not complying with rules or orders, or not taking a reasonable approach to settlement.
What are the exceptions to the general rule regarding costs in legal cases?
In cases concerning personal injury or death, the rules of QOWCS apply. These rules provide that if the claimant loses the case or any aspect of it, costs orders against them cannot be enforced except up to the level of damages and interest awarded to the claimant.
What happens after the court orders one party to pay another party’s costs in a legal case?
After the court orders one party to pay another party’s costs, the court will go on to assess those costs. This means that the court will determine the specific amount of costs that need to be paid.
What is the purpose of the rules of QOWCS in legal cases?
The rules of QOWCS apply in cases concerning personal injury or death. They provide that if the claimant loses the case or any aspect of it, costs orders against them cannot be enforced except up to the level of damages and interest awarded to the claimant.
What are the two perspectives from which a client may be concerned about costs in a legal case?
A client may be concerned about costs from two perspectives: firstly, the costs they will incur in preparing their own case, and secondly, the risk of being ordered to pay an opponent’s costs.
What is the purpose of assessing costs in a legal case?
After the court orders one party to pay another party’s costs, the court will assess those costs. This means that the court will determine the specific amount of costs that need to be paid.
What is the difference between summary assessment and detailed assessment of costs?
Summary assessment is a more rough and ready process where the judge decides the precise amount of costs immediately after deciding that one party should pay the other party’s costs. Detailed assessment, on the other hand, involves a more complicated and lengthy process where the costs are determined by a costs officer if the parties cannot agree on them.