Topic 1 - Costs

Question 1

What does the overview of costs element provide?

Answer 1

An overview of types of litigation costs and factors the court will consider when making a costs order.

Question 2

Why are costs significant in litigation?

Answer 2

The expense of litigation is significant, and the court’s power to order costs influences parties’ behavior.

Question 3

List the key components covered in the overview of costs.

Answer 3

• Different types of litigation costs
• General rule on costs
• Court’s power to order costs
• Basis for awarding costs
• Factors for making a costs order
• Qualified one way costs shifting regime.

Question 4

What is the court’s jurisdiction in relation to costs?

Answer 4

The court has full power to determine who pays costs and to what extent, including pre-action costs.

Question 5

What happens if a judge does not make a costs order?

Answer 5

Each party will pay its own costs.

Question 6

Define solicitor-client costs.

Answer 6

Costs payable by the client to the solicitor under the contract of retainer.

Question 7

What are inter-party costs?

Answer 7

The actual figure for costs awarded by the court which one party has to pay the other party.

Question 8

What does non-party costs refer to?

Answer 8

Costs awarded against a non-party, requiring a person not involved in proceedings to contribute to costs.

Question 9

Under what circumstances will non-party costs be ordered?

Answer 9

When a non-party funds the litigation and controls or benefits from the proceedings.

Question 10

What is the general rule for costs according to CPR 44.2?

Answer 10

Costs follow the event; the unsuccessful party pays the costs of the successful party.

Question 11

What must the court consider when making a different costs order?

Answer 11

• The parties’ conduct
• Success on only some issues.

Question 12

True or False: A successful party is always awarded their costs.

Answer 12

False.

Question 13

What are the two bases of assessment for costs according to CPR 44.3?

Answer 13

• Standard basis
• Indemnity basis.

Question 14

What does the standard basis of assessment entail?

Answer 14

Costs must be proportionately and reasonably incurred and reasonable in amount.

Question 15

What does the indemnity basis of assessment entail?

Answer 15

Costs must be reasonably incurred and reasonable in amount.

Question 16

What does ‘proportionate’ mean in the context of costs?

Answer 16

Costs must bear a reasonable relationship to specified criteria such as the sums in issue and complexity of litigation.

Question 17

What is the time frame for complying with an order for costs?

Answer 17

14 days from the date of judgment or order stating the amount.

Question 18

What is Qualified One Way Costs Shifting (QOCS)?

Answer 18

A regime that restricts the defendant’s ability to enforce a costs order against the claimant in personal injury claims.

Question 19

What determines whether costs are fixed or assessed?

Answer 19

The court’s decision on the amount payable when one party should pay another’s costs.

Question 20

What does fixed costs apply to?

Answer 20

All small claims, fast and intermediate track cases.

Question 21

What is summary assessment?

Answer 21

The court determines costs immediately at the end of a hearing.

Question 22

What is detailed assessment?

Answer 22

A complex procedure for determining the amount of a party’s costs to be paid.

Question 23

What is the first step in the detailed assessment of costs?

Answer 23

The court orders that costs be subject to detailed assessment if not agreed.

Question 24

What must the receiving party serve to commence detailed assessment proceedings?

Answer 24

A notice of commencement and a copy of its bill of costs.

Question 25

Within how many days must the paying party serve points of dispute regarding the bill of costs?

Answer 25

21 days.

Question 26

What happens if the parties cannot reach an agreement during the detailed assessment process?

Answer 26

The receiving party files a request for a detailed assessment hearing.

Question 27

How can the parties' budgets impact the assessment of costs?

Answer 27

Budgets can affect the assessment of costs even if a costs management order was not made.

Question 28

What types of interim costs orders are recognized under civil procedure rules?

Answer 28

Costs in any event, Costs in the case, Costs reserved, Claimant or defendant's costs in the case, Costs thrown away, Costs of and caused by, Costs here and below, No order for costs.

Question 29

What does a 'Costs in any event' order entail?

Answer 29

The party in whose favor this order is made is awarded its costs of the interim hearing from the other party regardless of who eventually wins at trial.

Question 30

What does a 'Costs in the case' order specify?

Answer 30

The party who eventually gets its costs at trial will recover its costs of the interim hearing from the other party.

Question 31

What is meant by 'Costs reserved'?

Answer 31

The decision about who pays the costs of the interim hearing is postponed to a later occasion.

Question 32

What does 'Costs thrown away' refer to?

Answer 32

Costs incurred as a result of a judgment or order being set aside.

Question 33

What does 'Costs of and caused by' imply?

Answer 33

A party must pay the costs resulting from something that party has done.

Question 34

What does 'Costs here and below' mean?

Answer 34

The party in whose favor the costs order is made is entitled to costs in respect of the proceedings and any lower court.

Question 35

What does 'No order for costs' indicate?

Answer 35

Each party will bear its own costs of this hearing.

Question 36

What is qualified one-way costs shifting (QOCS)?

Answer 36

A regime for the recovery of costs in proceedings involving claims for damages in respect of death and personal injury.

Question 37

What happens if the claimant wins under the QOCS regime?

Answer 37

They may recover and enforce costs orders obtained in the usual way.

Question 38

What happens if the claimant loses under the QOCS regime?

Answer 38

Costs orders against them cannot be enforced except up to the level of damages and interest awarded.

Question 39

What are some exceptions to the QOCS regime?

Answer 39

* Claimant disclosed no reasonable grounds for bringing a claim * Proceedings are an abuse of the courts' process * Conduct likely to obstruct the just disposal of proceedings

Question 40

What is the implication of a claim being found 'fundamentally dishonest' under QOCS?

Answer 40

Permission of the court is required to enforce a costs order to its full extent against the claimant.