Non-party costs (Costs)- FS

Question 1

Non-Party Costs Order

Answer 1

A court order requiring a person who is not a party to the proceedings to pay or receive costs relating to the litigation.

Question 2

Under what legislation does the court have the power to make a non-party costs order?

Answer 2

Section 51 of the Senior Courts Act 1981.

Question 3

What is the general principle behind non-party costs orders?

Answer 3

The court may, in its discretion, order a non-party to pay the costs of litigation if it is just to do so, especially where the non-party had a real interest or involvement in the litigation.

Question 4

Two-Step Procedure for a Non-Party Costs Order

Answer 4

1. The non-party must be joined to the proceedings for costs purposes only.
2. The non-party must be given notice and an opportunity to attend a hearing.

Question 5

Can a non-party both pay and receive costs under a non-party costs order?

Answer 5

Yes. The court may order either that a non-party pays costs or that costs are paid to a non-party, depending on the circumstances.

Question 6

What procedural rules govern applications for non-party costs orders?

Answer 6

The Civil Procedure Rules (CPR) set out the steps and requirements for applying for a non-party costs order.

Question 7

What is the purpose of giving the non-party notice and a hearing?

Answer 7

To satisfy the requirements of natural justice—the non-party must have a fair opportunity to respond before any costs order is made against them.

Question 8

Is the discretion to make a non-party costs order automatic once involvement is shown?

Answer 8

No. Even if the non-party is involved, the court must still consider whether it is just and equitable to make the order in the specific context.