DR: Costs Flashcards
(21 cards)
What are the three main categories of litigation costs?
Solicitor–client costs (owed under the retainer), inter-party costs (awarded by the court from one party to another), and non-party costs (exceptional orders against third-party funders)
What is the general rule on inter-party costs?
‘Costs follow the event’: the unsuccessful party normally pays the successful party’s costs, subject to the court’s discretion to order otherwise
Name three factors the court may consider when departing from the general costs rule.
Parties’ conduct (including unreasonable refusal to engage in ADR), whether a party succeeded on part of the claim, and proportionality (value, complexity, importance of the case)
What does ‘proportionate costs’ mean under CPR 44.3(5)?
Costs bear a reasonable relationship to the sums in issue, value of non-monetary relief, complexity, work generated by the paying party, and any wider factors (e.g., reputational/public importance)
What are the two bases for assessing costs?
Standard basis (allows only costs reasonably and proportionately incurred; doubt resolved in favor of paying party) and indemnity basis (allows all costs reasonably incurred; doubt resolved in favor of receiving party)
When are fixed costs applied instead of assessed costs?
Fixed costs apply automatically in all small-claims, fast-track, and intermediate-track cases (with complexity bands) under CPR 45, according to prescribed tables in Practice Direction 45
What is summary assessment of costs, and when is it used?
A ‘broad-brush’ assessment by the judge immediately after trial in fast-track cases or after any hearing lasting one day or less, using N260 cost statements served at least 24 hours beforehand
Outline the three main steps in detailed assessment of costs.
(1) Court orders detailed assessment if parties cannot agree; (2) Receiving party serves notice of commencement and bill of costs; (3) Paying party serves points of dispute within 21 days, then a detailed assessment hearing is listed
What role do costs budgets play in cost assessments?
In multi-track claims, approved or agreed budgets filed at the directions stage guide proportionality; the court uses them to set a costs management order and control how much may be recovered
What is a costs budget and when must it be filed?
In multi-track claims, each party must file a costs budget with its directions questionnaire, outlining estimated costs for each litigation phase; failure to file permits the court to disallow unrevealed costs
What is a costs management order?
An order after reviewing parties’ budgets that sets approved budget limits for each phase; costs can only be recovered up to those limits unless revised by court permission
What is a costs management conference (CMC)?
A hearing where the court discusses budgets with parties to manage and agree permitted costs, addressing any disputes or revisions to the proposed budgets
What types of interim costs orders can the court make under PD 44 4.2?
‘Costs in any event’ (winner of interim hearing recovers costs immediately), ‘Costs in the case’ (costs recoverable by final winner), ‘Costs reserved’ (decision delayed), ‘Claimant’s/Defendant’s costs in the case’, ‘Costs thrown away’, and ‘Costs of and caused by’
What does a ‘costs in any event’ order mean?
The party in whose favor the order is made recovers its costs of the interim hearing immediately, regardless of who wins at trial
What does ‘costs in the case’ imply for an interim hearing?
The successful party at trial will recover its interim-hearing costs from the losing party; no immediate order is made on the interim hearing alone
What is a ‘costs thrown away’ order?
If a judgment or order is set aside, the party in whose favor the original order was made recovers costs incurred because of that order (both the original hearing and the setting-aside hearing)
What does ‘costs of and caused by’ require?
A party must pay the costs resulting from an act they performed (e.g., extra costs caused by amending particulars of claim)
What is Qualified One-Way Costs Shifting (QOCS)?
A regime in PI/death cases preventing a losing claimant from having costs enforced beyond the amount of their damages and interest, with limited exceptions
In a PI claim where the defendant wins, how much of the defendant’s costs can be enforced against the claimant?
Up to the total damages and interest awarded to the claimant—if the claimant recovers nothing, no costs can be enforced, absent an exception
Under QOCS, when can a defendant enforce costs against a losing PI claimant to the full extent?
If the claimant’s case is found to be fundamentally dishonest or struck out for lack of reasonable grounds or abuse of process, or other specified exceptions apply
In a scenario where a claimant recovers £18,000 but has incurred £25,000 of defendant’s costs after refusing a settlement, how much can the defendant enforce?
Up to £18,000 (the amount of damages); the excess £7,000 is unrecoverable under QOCS
