Costs Flashcards
(34 cards)
When are costs orders typically made by the court?
- At the end of an interim application
- At the end of trial
What elements make up a litigation costs framework?
- Overview of costs
- Costs procedure
- Interim costs orders
- Costs management
What types of litigation costs are commonly encountered?
- Solicitor-client costs (client to solicitor)
- Inter-party costs (loser pays winner)
- Non-party costs (against a funder or third party)
What is the indemnity principle in costs?
A party cannot recover from the opponent more than they owe their own solicitor.
When can costs be awarded against a non-party?
- Only in exceptional cases
- Where non-party funds and controls litigation or stands to benefit
- Where it is just to do so
What discretion does the court have regarding costs (CPR 44.2)?
- Whether costs are payable
- The amount
- When they are payable
What is the general rule on inter-party costs?
Costs follow the event – the unsuccessful party pays the successful party’s costs.
Can the court depart from the general rule?
Yes. Based on factors including:
- Parties’ conduct
- Success on only part of the claim
- Failure to engage in ADR
What is an example of behaviour affecting a costs order?
A successful party may be penalised on costs if they unreasonably refused to engage in ADR.
What are the two bases of cost assessment?
- Standard basis: costs must be reasonable and proportionate; doubts resolved in favour of paying party
- Indemnity basis: costs must be reasonable; doubts resolved in favour of receiving party
What is typically recovered under each basis?
- Standard: ~60%
- Indemnity: ~70–80%
When are indemnity costs more likely to be awarded?
When a party’s conduct merits disapproval.
What does ‘proportionate’ mean under CPR 44.3(5)?
Costs must bear a reasonable relationship to:
- Sum/value of the claim
- Non-monetary relief
- Complexity
- Conduct of the paying party
- Wider factors (e.g., public interest)
When must a party pay an order for costs?
Within 14 days of:
- Judgment/order date (if costs stated), or
- Date of certificate (if assessed later) (CPR 44.7)
What is QOCS?
Qualified One-Way Costs Shifting (CPR 44.13) protects personal injury/death claimants from adverse costs orders.
What is the effect of QOCS?
- If claimant loses: costs orders not enforceable beyond damages/interest awarded (often zero)
- If claimant wins: normal recovery applies
What are the exceptions to QOCS under CPR 44.15?
Costs enforceable in full if claim is struck out for:
- No reasonable grounds
- Abuse of process
- Conduct obstructing just disposal
What is ‘fundamental dishonesty’?
If the claim is fundamentally dishonest, the court may allow full enforcement of costs against the claimant (with permission).
What are fixed costs?
Specific amounts recoverable under the CPR without assessment (CPR 45), e.g., in small claims, fast/intermediate track, PI.
What determines fixed costs in fast/intermediate tracks?
- Complexity band (1–4)
- Stage at which case concluded
What are assessed costs?
Costs determined by the court (standard or indemnity basis), either by summary or detailed assessment.
When is summary assessment used?
- Fast track trial
- Hearings lasting <1 day
- Requires form N260 served 24 hours in advance (44 PD 9.5)
What is the process for detailed assessment?
- Notice of commencement + bill of costs
- Points of dispute served in 21 days
- Request for detailed assessment hearing
- Court determines amount
What CPR rule covers interim costs orders?
44 PD 4.2
