Costs Flashcards
(21 cards)
Solicitor-client costs - type of litigation cost
Costs payable by the client to the solicitor under
the contract of retainer. The indemnity principle provides that a party will not be able to recover a sum in excess
of their liability to their own solicitor.
Inter-party costs - type of litigation cost
The actual figure for costs awarded by the court which one party has to pay the other party.
Non-party costs - type of litigation cost
Court has jurisdiction to require a person who is not a party to the proceedings to pay something towards the
costs. Where the non-party both funds but also substantially controls or at any rate is to benefit from proceedings, justice will ordinarily require that if the proceedings fail the non-party will pay the successful party’s costs.
Standard basis
Court will allow costs which have been proportionately and reasonably incurred and are proportionate and are proportionate and reasonable in amount. Any doubt is resolved in favour of the paying party. It is not uncommon for only 60% of costs to be recovered from the paying party.
Indemnity basis
Court will allow costs which have been reasonably incurred and are reasonable in amount. Any doubt is resolved in favour of the receiving party. It is not uncommon that the receiving party will receive 70 – 80% of its legal costs from the paying party.
In deciding amount of costs, court will take into account…
conduct of the parties , the complexity of the matter, the place where and circumstances in which the work was done and the receiving party’s last
approved or agreed budget.
Time for complying with 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 those costs (or part of them) is decided later, the date of the
certificate which states the amount;
Qualified one way costs shifting (QOCS)
A 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.
Fixed costs
Amount fixed by the rules and applies to all small, fast and intermediate track cases. There are 4 complexity bands in Fast and intermediate track, the complexity band and the stage at which the case is concluded determines the amount of fixed costs that can be recovered.
Assessed costs
Where costs do not fall under fixed costs regime and parties are unable to agree the amount, court will assess costs. There are 2 bases of assessments - standard and indemnity.
Summary assessment
The parties
must prepare statements of costs, preferably on the standard form N260
and file and serve them on each party not less than 24 hours before the time fixed for the hearing. The court will
review these, hear the parties’ short submissions, and then decide much should be paid.
When is summary assessment used?
➢ In fast track cases at the end of the trial. In this situation, the costs of the whole case
will be assessed; and
➢ At the end of a hearing of an interim application or matter which has not lasted more
than a day. In this case, usually only the costs of the interim application will be
assessed.
Detailed assessment
To commence detailed assessment proceedings, receiving party serves a notice of commencement and a copy of its bill of costs on paying party.
Points of dispute in relation to any item in the bill of costs should be served on receiving party by paying party within 21 days of service of the notice of commencement.
If parties cannot reach agreement, receiving party should file a request
for a detailed assessment hearing at which a costs officer will determine the sum to
be paid.
Costs in any event - type of interim costs order
The party in whose favour this order is made is awarded its costs of the interim hearing from the other party regardless of who eventually wins at trial.
Costs in the case - type of interim costs order
The party who eventually gets its costs at trial (usually the winner) will recover its costs of the interim hearing from the other party
Costs reserved - type of interim costs order
The decision about who pays the costs of the interim hearing is put off to a later occasion. If no decision is later made then the costs will be in the case.
Claimant/defendant’s costs in the case - type of interim costs order
In the case of the claimant’s costs in the case, if the claimant is successful and receives an order that it should be entitled to its costs at the end of trial, it can include the costs of the interim application. If the defendant is awarded costs at trial, the claimant does not have to pay the defendant’s costs of the interim application. In the case of the defendant’s costs in the case, the same principles apply but in reverse.
Costs thrown away - type of interim costs order
If a judgment or order is set aside, the party in whose favour this costs order is made is entitled to the costs incurred as a result of the judgment or order being set aside.
Costs of and caused by
A party must pay the costs resulting from something that party has done
Costs here and below
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.
No order for costs - type of interim costs order
Each party will bear its own costs of this hearing.
