Costs Flashcards
What factors does the court consider when making a costs order, and how does the court exercise its discretion with respect to the amount and timing of costs payable, according to CPR 44.2(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.
What factors does the court consider when deciding on costs.
(CPR 44.2(4)) and in relation to the amount of costs to be awarded (CPR 44.4(3)). One factor common to both of these decisions is that the court will have regard to the parties’ conduct.
Can a costs order be enforced against the claimant without the court’s permission under the rules on QOCS (CPR 44.13-16), and what happens if the claimant wins the case or any aspect of it?
The rules on QOCS (CPR 44.13 – 16) provide that a costs order made against the claimant can only be enforced without the permission of the court to the extent that it does not exceed the order for damages and interest made in favour of the claimant. However, if the claimant wins the case, or any aspect of it they may recover and enforce costs orders in the usual way.
Explain Fixed costs
Having decided that one party should pay the other party’s costs, the court has to decide ‘how much’. However, sometimes that ‘how much’ question has a simple answer – the amount is fixed by the rules. These are called ‘fixed costs’ (CPR 45).
In summary, fixed costs are a predetermined and limited amount of legal costs that apply in certain types of legal cases.
When does the court need to be involved in deciding and calculating the amount of payable costs, and what are the two bases of assessment?
Summary
Summary assessment is a simplified procedure that is used when the costs claimed are relatively straightforward and can be determined quickly. The judge will consider the evidence presented by the parties and make an estimate of the amount of costs to be paid. The judge will then make a summary assessment of the amount of costs to be paid.
Detailed
Detailed assessment, on the other hand, is a more complex procedure that is used when the costs claimed are more substantial or when the parties cannot agree on the amount of costs to be paid. In this process, the court will examine the detailed breakdown of costs provided by the parties, assess the reasonableness of the costs, and make a determination of the amount of costs to be paid.
How does summary assessment work?
-a quick process to determine the legal costs to be paid by one party to another after a hearing.
-Both parties must prepare and file statements of costs on standard form N260 at least 24 hours before the hearing.
-The court reviews the statements of costs, hears brief submissions from the parties, and makes a decision on the amount to be paid.
-The court’s decision is made broadly, without a detailed assessment of each item of costs claimed.
-Summary assessment aims to promote promptness, proportionality, and fairness in the award of costs.
What is a detailed assessment?
Detailed assessment of costs is a more complex procedure for determining the amount of a party’s costs to be paid. In outline, the procedure is as follows:
How do the parties’ respective budgets and the costs management procedure impact the assessment of costs, and where is this covered in detail?
Any consideration of costs orders made by the court must include, where relevant, the role played by the parties’ respective budgets and the costs management procedure. The budgets can have an impact on the assessment of costs, even if a costs management order was not made.
What do fixed costs apply to?
Fixed costs generally apply to the following type of situations: uncontested disputes,enforcement proceedings andsmall claims.
Lila brings a claim for damages for personal injury against her employer. The court finds in favor of the employer and Lila is unsuccessful in her claim. Can the employer recover their costs from Lila, and why or why not?
The employer cannot recover their costs from Lila because qualified one-way costs shifting provides protection only to a party bringing a claim for damages for personal injuries. This means that although Lila was unsuccessful in her claim, she is entitled to the protection afforded by r.44.14. The employer, on the other hand, was not entitled to that protection, so they cannot recover their costs from Lila. The legal precedent to support this answer is Wagenaar v Weekend Travel Ltd [2014] EWCA Civ 1105.
John brings a claim for personal injuries against his neighbor, but the court dismisses the claim. John appeals the dismissal of his claim for personal injuries. Is John entitled to the protection of qualified one-way costs shifting in respect of the costs of the appeal, and why or why not? Provide a legal precedent to support your answer.
John is entitled to the protection of qualified one-way costs shifting in respect of the costs of the appeal because any appeal which concerns the outcome of a claim for damages for personal injuries, or the procedure by which such a claim is to be determined, is part of the “proceedings” under r.44.13, and qualified one-way costs shifting will apply. This applies even in respect of the costs of a second appeal brought by the defendant to the original claim, and where the court has declined to exercise its discretionary power to limit recoverable costs under r.52.19. The legal precedent to support this answer is Parker v Butler [2016] EWHC 1251 (QB).
Sara is involved in a road accident in France with a driver whose vehicle cannot be identified. She brings a claim against the Motor Insurers’ Bureau for compensation under reg.13(1) of the Motor Vehicles (Compulsory Insurance) (Information Centre and Compensation Body) Regulations 2003. Does qualified one-way costs shifting apply to this claim, and why or why not? Provide a legal precedent to support your answer.
Qualified one-way costs shifting does apply to Sara’s claim against the Motor Insurers’ Bureau under reg.13(1) of the Motor Vehicles (Compulsory Insurance) (Information Centre and Compensation Body) Regulations 2003. Although such a claim is for statutory compensation, the principle of effectiveness required that it fell within the rule. The legal precedent to support this answer is Howe v Motor Insurers’ Bureau (No.2) [2017] EWCA Civ 932; [2018] 1 W.L.R. 923, CA.
Bob brings a claim for personal injury against his landlord, and the landlord counters with a claim for damages for personal injury against Bob. The court finds in favor of Bob on his claim but also finds that the landlord’s counterclaim is unsuccessful. Can the landlord recover their costs of defending Bob’s personal injury claim, and why or why not? Provide a legal precedent to support your answer.
There are conflicting decisions at circuit judge level as to whether the landlord is entitled to the protection of r.44.14 in respect of the costs of defending Bob’s personal injury claim. The case of Waring v McDonnell [2018] EW Misc B11 (CC) is cited as evidence of these conflicting decisions. Therefore, it is difficult to provide a definitive answer to this question without more information about the case’s specific circumstances.
Q: What are solicitor-client costs?
Solicitor-client costs are one of the types of costs associated with the conduct of litigation. They refer to the costs incurred by a client in retaining a lawyer and include items such as legal fees, disbursements, and taxes.
What are inter-party costs?
Inter-party costs are one of the types of costs associated with the conduct of litigation. They refer to the costs that one party is ordered to pay to another party in a lawsuit, and include items such as legal fees and disbursements.
