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Civil Litigation > Cost Management > Flashcards

Cost Management Flashcards

1
Q

What is costs?

A

amount that is due to legal advisers for their service

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2
Q

What happens if at the end of trial, the court gives an order which is silent as to costs?

What does this mean?

A

no party is entitled to costs

each party pays their own legal advisers

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3
Q

When may the court make an order about costs?

A

At any stage in a case

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4
Q

What is the starting point when it comes to costs?

A

The loser pays the winner’s fees as well as their own

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5
Q

Who pays the fees?

A

The loser

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6
Q

What does the court have discretion to when it comes to costs?

A
  1. Who pays the cost
  2. How much the costs are
  3. When costs should be paid
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7
Q

In deciding on costs, what must the court have regards to?

A

all circumstances of the case

  • how parties have conducted themselves
  • level of success of the winner
  • any offers to settle
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8
Q

TRUE OR FALSE: Loser pays the winner’s costs means that they must pay ALL of their fees regardless of the circumstances? Why?

A

False. court may decide otherwise

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9
Q

TRUE OR FALSE: Loser pays all the winner’s costs principle may be adjusted?

A

TRUE

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10
Q

What options does the court have in determining who pays costs between C and multiple Ds?

A

Sanderson Order

Bullock Order

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11
Q

What is a Sanderson order?

A

court will order losing Ds to pay both fees of C and the winning defendants as well as their own, as well as C’s winning costs

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12
Q

What is a Bullock order?

A

Court will order C pays the winning D’s costs and order the losing D’s to pay C’s winning costs, their fees, as well as reimbursed C for the winning D’s fees

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13
Q

The court when exercising direction as to costs may choose to order that costs be paid by which two mechanisms/orders?

A

Sanderson Order

Bullock Order

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14
Q

What happens if C is found to have been unreasonable for bringing claim against multiple Ds?

A

likely C will be ordered to pay own costs of bringing the claim

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15
Q

What is the time for complying with order for costs?

A

within 14 days of judgment if amount of costs is stated

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16
Q

What is the method for assessing Fast Track claims?

A

Summary Assessment

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17
Q

What is the method for assessing Multi-Track claims?

A

Detailed Assessment

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18
Q

What is a summary assessment of costs?

A

Where court determines costs there and then at the end of the hearing/trial

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19
Q

What is a detailed assessment of costs?

A

Where costs are assessed at the conclusion of proceedings

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20
Q

Who’s duty is it to assist the court in making a summary assessment?

A

The parties and their legal representatives

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21
Q

Eacg party who intends to claim costs, must prepare a written statement of costs showing what?

A
  • number of hours claimed
  • hourly rate claimed
  • amount/nature of disbursement
  • legal representatives costs
  • any VAT
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22
Q

What must the party do with their statement of costs?

A

file at court

serve on parties

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23
Q

When must a statement of costs be served on the other party in Fast Track trials?

A

not less than 2 days before trial

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24
Q

When must a statement of costs be served on the other party in 1 day long trials?

A

not less than 24 hours before trial

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25
Q

What basis are costs assessed?

A

Either

Standard basis of assessment
or
Indemnity basis of assessment

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26
Q

What is the standard basis of assessment?

A

-proportionately and reasonably incurred
or
-of a proportionate and reasonable amount

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27
Q

What is the indemnity basis of assessment?

A

disallows unreasonable costs

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28
Q

What will happen if court considers in a standard basis of assessment that the costs have been unreasonably incurred or are of an unreasonable amount?

what may the court do instead?

A

Full costs will not be allowed/

may award costs on indemnity basis

29
Q

What is the general rule of detailed assessment costs?

A

The general rule is that the costs of any proceedings or any part of proceedings are not to be assessed until the conclusion of proceedings

30
Q

What happens if parties cannot agree on costs?

A

Cost officer decides amount for costs payable

31
Q

What is the name of the order when a Cost officer has to decide amount for costs payable?

A

‘final order for costs to be assessed if not agreed’

32
Q

How is detailed assessment commenced?

A

Party serves notice of commencement and the bill of costs

33
Q

When must detailed assessment commence?

A

within three months of final judgment

34
Q

What happens if D disputes the detailed assessment?

A

D can serve ‘Points of dispute’

35
Q

When should ‘Points of dispute’ be served?

A

within 21 days of receiving ‘notice of commencement’

36
Q

What can C do if D serves a ‘Point of dispute’?

A

C can reply to the dispute

37
Q

How/ When can C reply to D’s ‘Point of dispute’?

A

C can serve a reply to the points of dispute.

within 21 days of receiving the points of dispute

38
Q

What will court have regards to when assessing costs in Fast-Track claims?

A

-All circumstances including

  • parties conduct
  • level of success of winer
  • any offers to settle
39
Q

What will the court have regards to when assessing costs in Multi-Track claims?

A

-All circumstances including

  • parties conduct
  • level of success of winer
  • any offers to settle
  • amount agreed in final costs budget
40
Q

TRUE OR FALSE: Unless court orders otherwise, all parties (except litigants in person) must file and exchange a cost budget?

A

TRUE

41
Q

When must a cost budget be filed?

A

no later than 7 days before the first case management

42
Q

When must parties file a cost budget?

A

claims less than 50k

other cases: not later than 21 days before first case management

43
Q

TRUE OR FALSE: All statements of case must be verified by a statement of truth?

A

TRUE

44
Q

TRUE OR FALSE: Cost budgets must be verified by a statement of truth?

A

TRUE

45
Q

What happens if a party fails to file a cost budget?

A

party still taken to have filed one which only deals with court fees

46
Q

What happens where there is a difference of 20% or more between costs claimed by receiving party on detailed assessment and lower costs shown in a cost budget filed by that party?

A

That party must provide statement of the reasons for the difference with the bill of costs

47
Q

Example of when cost budgets do not come in play?

A
  • Part 8 claims
  • Part 7 claims which are subject to fixed costs
  • where court orders otherwise
48
Q

What is a hearing which is solely for the purpose of cost management called?

A

cost management conference

49
Q

What is a cost management conference?

A

a hearing which is solely for the purpose of cost management

50
Q

Example of when a cost management order will be made?

A
  • cost budgets are filed and exchanged

- cost management order has been made

51
Q

Example of when a cost management order will be not made?

A
  • court satisfied litigation can be conducted at proportionate costs in accordance with O.O
  • court considers costs disproportionate
  • court does not have to make a court management order
52
Q

What will court have regards to when making any cost management order?

A
  • party’s last approved/agreed budget
53
Q

What will court have regards to when deciding whether to make a cost management order?

A
  • any available budgets
  • costs involved in each procedural step
  • consider whether budgeted costs are reasonable and proportionate
54
Q

What can a party do if they have concerns that the opposing party may not be able to afford to pay them costs if they win?

A

Apply for security of costs

55
Q

How can security of costs be given?

A
  1. paying sum of money into court
  2. obtaining and giving a guarantee for costs
  3. providing some other security
56
Q

When can D make an application for security of costs be made?

A

made at any stage of the proceedings after serving AOS/Defence

57
Q

How should an application for security of costs be made?

A

promptly as soon as the facts justifying the order are known

58
Q

What conditions need to be satisfied on an application for security of costs?

A

ALL circumstances

  • If it is just to do so
  • If an enactment allows
  • where C is a company
59
Q

What must the court do if they make an order for security of costs?

A

Court will determine amount of security and the manner and time which security must be given

60
Q

When can C apply for an interim payment?

A

where C wants to claim in advance of what he believes he will win in damages

61
Q

When can an application for an interim payment be made by C?

A

After end of period for D to file AOS

62
Q

TRUE OR FALSE: There can be more than 1 interim application made?

A

TRUE

63
Q

When will the court likely make an order for for interim payment?

A
  • D has admitted to liability
  • C already has judgment but awaiting assessment of damages
  • court is satisfied that if claim went to trial, party will win
64
Q

TRUE OR FALSE: Unless D agrees, interim payment is not disclosed at trial?

A

TRUE

65
Q

TRUE OR FALSE: Court may make an order for interim payment in one sum or in instalments?

A

TRUE

66
Q

What will cost orders following an interim application be subjected to? Who? When?

A

A summary assessment by judge at end of hearing

67
Q

When are interim costs payable by?

A

within 14 days of them becoming due

68
Q

What does it mean if there is no order as to costs after an interim hearing?

A

It means party pays their own costs

Civil Litigation (12 decks)

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