Law of costs
Encyclopedia
Costs is a term of art in civil litigation in English law
(the law of England and Wales
), and in other Commonwealth jurisdictions. After judgment has been given, the judge
has the power to order who will pay the lawyer
s' fees and other disbursements of the parties (the costs). The law of costs defines how such allocation is to take place.
jurisdiction
s, save that of the United States
. In general "costs follow the event" so that the successful party to litigation is entitled to seek an order that the unsuccessful party pay his or her costs. Recoverable costs are limited to:
"No win no fee" is the term used to describe the conditional fee agreement between a law firm and its client. In a personal injury claim, this is an agreement between the client and their lawyer, which will enable the lawyer to take on a personal injury case on the understanding that if they lose the case, the client will not have to pay their lawyer's costs.
In-house corporate
legal teams can conduct litigation and have rights of audience
. They can claim the remuneration and expenses of the lawyers involved. Litigants in person
must prove their own financial loss in conducting the action or they will otherwise be awarded £
18.00 per hour. The costs awarded to a litigant in person cannot exceed 2/3 of what could be claimed by a professional lawyer.
Litigants often benefit from before-the-event (BTE) legal expenses insurance
against paying the other party's legal costs as part of their domestic or automobile insurance policies (although many are unaware of it). Otherwise, they can purchase after-the-event (ATE) legal expenses insurance at the start of litigation.
The law of costs is often known as the English rule. The situation contrasts with that in the U.S. where legal fees may be sought only if the parties agree by contract
before the litigation, or if some special act or statute
allows the successful party to seek such fees, the American rule
. Federal district court and Court of Appeals judges award costs to the prevailing party under Federal Rules of Civil Procedure
54. Generally, state court judges have no common law right to award such fees against the losing party. It has been suggested that the American rule contributes to making the U.S. a litigious society. Individuals have little to lose beyond filing fees and a retainer to start a lawsuit, and they are not at risk of having to pay their opponent's fees if they lose. Conversely, the English rule has been criticised. It is sometimes pointed out that the English approach potentially hinders access to justice by increasing the risks of litigation, both by setting up the risk of having to pay both parties' full costs in the event of losing, and by creating incentives for parties to sink ever increasing resources into their respective cases in order to win the action and avoid paying any fees, a strategy that cannot succeed under the American rule, thereby increasing the overall cost-risk of litigation. The German costs rule, which allows for fixed recoverable costs, avoids this unfortunate consequence of full-fees recovery.
, as opposed to preparatory work, are fixed. There are also fixed costs for road traffic accident (RTA) claims that settle before they are issued, and fixed success fees for RTAs and employment claims.
The court will take account of the conduct of the parties and may vary the usual costs order in the event of misguided or dishonest behaviour. In particular, claimants are expected to give the defendant an opportunity to settle, and the parties are expected to exchange essential information and details before starting a claim. The court will especially be aware of any formal offers to settle made under Part 36 of the Civil Procedure Rules. Such offers are withheld from the judge during the trial but, during assessment of costs, the judge will compare them with the final damages
awarded.
If the defendant rejects the claimant's Part 36
offer to settle and the claimant equals or betters that offer at trial, the judge can award:
— on:
If the claimant rejects the defendant's offer to settle and fails to better that offer at trial:
Other exceptions to the general rule include:
The judge has considerable discretion
to apply or disapply these rules if the result would otherwise be unjust
. The paying party can appeal
against the costs order by the usual routes of appeal.
.
The principle causes anomalies for pro bono
representation where, because the lawyers have agreed to represent the party for no cost, they cannot subsequently ask the court for a costs award when they win. However, section 194 of the Legal Services Act 2007
allows the court to order a party who loses against pro bono representation to make an appropriate charitable donation
in lieu of costs. These provisions come into force progressively from 30 June to 1 October 2008.
There are specific exceptions to the principle for:
Costs awarded on the indemnity basis need not be proportional. Any doubt as to the costs is resolved in favour of the receiving party.
— if they are not proportionate:
However, summary assessment is not permitted for claims:
— or where:
, now known as detailed assessment, is used. It is unrelated to "tax
" in the sense of a method of raising government revenue. The successful party must file with the court a detailed breakdown of the costs and disbursements incurred, known as a bill of costs
which sets out the successful party's claim. The bill is usually prepared by a law costs draftsman
, whose skill is often as essential to successful litigation as that of a solicitor or barrister. An officer of the court, Costs Judge or District Judge will then assess the reasonableness of the costs with reference to a statutory schedule of limits of entitlements of costs, together with legal precedents, unless the costs can be agreed between the parties. The level of reduction can mean that the bill is reduced in some instances substantially, but in most cases at least 80% of the costs originally sought will be allowed. A court order for costs is enforceable as a debt against the unsuccessful party.
Either party can appeal against a detailed assessment, to a Costs Judge or District Judge of the High Court if the assessment was made by a court officer, or by the usual routes of appeal if the assessment was made by a judge.
awarded as this would amount to champerty
. A client who is unhappy with a lawyer's invoice
for services can, in certain jurisdictions, apply to the court for an order or invoke a statutory procedure whereby the costs are assessed for their reasonableness by an officer of the court, for example a judge. This is also called detailed assessment. There are statutory time limits on applying for such a procedure. The frequent result is that the lawyer's invoice is decreased. If the bill is reduced by one fifth or more the solicitor will pay for the process of assessment, but otherwise the client will pay. In some jurisdictions if the client does not pay the lawyer, the lawyer has a cause of action for his own lawsuit if the client does not elect to arbitrate the attorney's bill. The client can alternatively apply to the Law Society
for a remuneration certificate in respect of costs arising from other than litigation.
or an indemnity
towards damages, against a third party. For example, a diner claims against a restaurant for a dose of food poisoning and the restaurant claims against their supplier of shellfish
. Again, "costs follow the event". If the restaurant successfully defends the claim, they pay the supplier's costs and recover the same amount from the unsuccessful claimant. This can cause injustice when the unsuccessful claimant is insolvent
and the successful defendant is still liable for third-party costs. The courts will only rarely allow a "cut through" of the third-party's costs to the claimant but the interests of justice prevail.
. BTE insurers are not liable for such costs.
.
one Party pays the other a sum up-front before costs have been finally assessed or agreed.
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
(the law of England and Wales
England and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
), and in other Commonwealth jurisdictions. After judgment has been given, the judge
Judge
A judge is a person who presides over court proceedings, either alone or as part of a panel of judges. The powers, functions, method of appointment, discipline, and training of judges vary widely across different jurisdictions. The judge is supposed to conduct the trial impartially and in an open...
has the power to order who will pay the lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
s' fees and other disbursements of the parties (the costs). The law of costs defines how such allocation is to take place.
"Costs follow the event"
The law of costs in England and Wales is typical of common lawCommon law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s, save that of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. In general "costs follow the event" so that the successful party to litigation is entitled to seek an order that the unsuccessful party pay his or her costs. Recoverable costs are limited to:
- Fees and charges of the solicitorSolicitorSolicitors are lawyers who traditionally deal with any legal matter including conducting proceedings in courts. In the United Kingdom, a few Australian states and the Republic of Ireland, the legal profession is split between solicitors and barristers , and a lawyer will usually only hold one title...
(attorney), which may be hourly or daily; - Disbursements, including barristerBarristerA barrister is a member of one of the two classes of lawyer found in many common law jurisdictions with split legal professions. Barristers specialise in courtroom advocacy, drafting legal pleadings and giving expert legal opinions...
s' fees; - Witness allowances (conduct moneyConduct moneyConduct money is money paid in some legal systems to a person under the compulsion of a summons to witness to pay for their expenses to attend in court. It generally incorporates a daily rate for each day the witness must attend in court , plus a travel allowance to allow the witness to get to...
), including fees paid to expert witnessExpert witnessAn expert witness, professional witness or judicial expert is a witness, who by virtue of education, training, skill, or experience, is believed to have expertise and specialised knowledge in a particular subject beyond that of the average person, sufficient that others may officially and legally...
es; - Some professional fees for non-witnesses; and
- Lawyers' "success fees" allowable by the court under a valid conditional fee agreement (CFA).
"No win no fee" is the term used to describe the conditional fee agreement between a law firm and its client. In a personal injury claim, this is an agreement between the client and their lawyer, which will enable the lawyer to take on a personal injury case on the understanding that if they lose the case, the client will not have to pay their lawyer's costs.
In-house corporate
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
legal teams can conduct litigation and have rights of audience
Rights of audience
In common law, a right of audience is generally a right of a lawyer to appear and conduct proceedings in court on behalf of their client. In English law, there is a fundamental distinction between barristers, who have a right of audience, and solicitors, who traditionally do not ; there is no such...
. They can claim the remuneration and expenses of the lawyers involved. Litigants in person
Litigant in person
A litigant in person, in the United Kingdom, is an individual, company or organisation that is not represented in court by a solicitor or barrister, but nevertheless has rights of audience...
must prove their own financial loss in conducting the action or they will otherwise be awarded £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
18.00 per hour. The costs awarded to a litigant in person cannot exceed 2/3 of what could be claimed by a professional lawyer.
Litigants often benefit from before-the-event (BTE) legal expenses insurance
Legal Expenses Insurance
Legal expenses insurance , also known as legal protection insurance or simply legal insurance, is a type of insurance which covers policyholders against the potential costs of legal action brought against the policyholder by another individual or institution...
against paying the other party's legal costs as part of their domestic or automobile insurance policies (although many are unaware of it). Otherwise, they can purchase after-the-event (ATE) legal expenses insurance at the start of litigation.
The law of costs is often known as the English rule. The situation contrasts with that in the U.S. where legal fees may be sought only if the parties agree by contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
before the litigation, or if some special act or statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
allows the successful party to seek such fees, the American rule
American rule
"American rule" may refer to one of several concepts in law, in contrast to the English rule:* The American rule for successive assignments of rights* The American rule for attorney's fees...
. Federal district court and Court of Appeals judges award costs to the prevailing party under Federal Rules of Civil Procedure
Federal Rules of Civil Procedure
The Federal Rules of Civil Procedure govern civil procedure in United States district courts. The FRCP are promulgated by the United States Supreme Court pursuant to the Rules Enabling Act, and then the United States Congress has 7 months to veto the rules promulgated or they become part of the...
54. Generally, state court judges have no common law right to award such fees against the losing party. It has been suggested that the American rule contributes to making the U.S. a litigious society. Individuals have little to lose beyond filing fees and a retainer to start a lawsuit, and they are not at risk of having to pay their opponent's fees if they lose. Conversely, the English rule has been criticised. It is sometimes pointed out that the English approach potentially hinders access to justice by increasing the risks of litigation, both by setting up the risk of having to pay both parties' full costs in the event of losing, and by creating incentives for parties to sink ever increasing resources into their respective cases in order to win the action and avoid paying any fees, a strategy that cannot succeed under the American rule, thereby increasing the overall cost-risk of litigation. The German costs rule, which allows for fixed recoverable costs, avoids this unfortunate consequence of full-fees recovery.
Reasonableness
Costs must be "reasonably incurred and reasonable in amount". Costs must be reasonable, even if they are specified by contract, save if contract expressly provides that they need not be reasonable. Reasonableness is assessed against "all the circumstances" and in particular the "seven pillars of wisdom":- Conduct of the parties:
- Before as well as during proceedings;
- Efforts made to resolve the dispute;
- Value of the property at issue;
- Importance of the matter to the parties;
- Complexity, difficulty or novelty of the case;
- Skill, effort, specialised knowledge or responsibility required;
- Time spent on the case;
- Geographical location where work the work was done.
Exceptions
The rule that "costs follow the event" is observed on the Multi- and Fast Tracks. However, on the Small Claims Track, only specific limited costs such as fixed court fees are usually awarded. Further, on the Fast Track, the actual costs of the trialTrial (law)
In law, a trial is when parties to a dispute come together to present information in a tribunal, a formal setting with the authority to adjudicate claims or disputes. One form of tribunal is a court...
, as opposed to preparatory work, are fixed. There are also fixed costs for road traffic accident (RTA) claims that settle before they are issued, and fixed success fees for RTAs and employment claims.
The court will take account of the conduct of the parties and may vary the usual costs order in the event of misguided or dishonest behaviour. In particular, claimants are expected to give the defendant an opportunity to settle, and the parties are expected to exchange essential information and details before starting a claim. The court will especially be aware of any formal offers to settle made under Part 36 of the Civil Procedure Rules. Such offers are withheld from the judge during the trial but, during assessment of costs, the judge will compare them with the final damages
Damages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
awarded.
If the defendant rejects the claimant's Part 36
Civil Procedure Rules 1998
The Civil Procedure Rules are the rules of civil procedure used by the Court of Appeal, High Court of Justice, and County Courts in civil cases in England and Wales...
offer to settle and the claimant equals or betters that offer at trial, the judge can award:
- Indemnity costs against the defendant; or
- Punitive interestInterestInterest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
up to 10% above base rateBase rateIn probability and statistics, base rate generally refers to the class probabilities unconditioned on featural evidence, frequently also known as prior probabilities...
against the defendant;
— on:
- The whole or part of the costs awarded; or
- For some or all of the time.
If the claimant rejects the defendant's offer to settle and fails to better that offer at trial:
- The defendant is entitled to costs from the time the offer expired; and
- Interest on the costs.
Other exceptions to the general rule include:
- Applications to extend time limits, usually paid by the applicant;
- Amendments to statements of case, usually paid by the amending party; and
- Failure to respond to a notice to admit where the receiving party will usually pay the costs of proving the facts alleged.
The judge has considerable discretion
Discretion
Discretion is a noun in the English language with several meanings revolving around the judgment of the person exercising the characteristic.-Meanings:*"The Art of suiting action to particular circumstances"...
to apply or disapply these rules if the result would otherwise be unjust
Justice
Justice is a concept of moral rightness based on ethics, rationality, law, natural law, religion, or equity, along with the punishment of the breach of said ethics; justice is the act of being just and/or fair.-Concept of justice:...
. The paying party can appeal
Appeal
An appeal is a petition for review of a case that has been decided by a court of law. The petition is made to a higher court for the purpose of overturning the lower court's decision....
against the costs order by the usual routes of appeal.
The indemnity principle
The indemnity principle, a term unrelated to the concept of indemnity costs, stipulates that a paying party cannot be ordered to pay more than the receiving party has already agreed to pay his solicitor, the retainerRetainer agreement
A retainer agreement is a work for hire contract. It falls between a one-time contract and full-time employment. Its distinguishing feature is that the employer pays in advance for work to be specified later...
.
The principle causes anomalies for pro bono
Pro bono
Pro bono publico is a Latin phrase generally used to describe professional work undertaken voluntarily and without payment or at a reduced fee as a public service. It is common in the legal profession and is increasingly seen in marketing, technology, and strategy consulting firms...
representation where, because the lawyers have agreed to represent the party for no cost, they cannot subsequently ask the court for a costs award when they win. However, section 194 of the Legal Services Act 2007
Legal Services Act 2007
The Legal Services Act 2007 is an Act of the Parliament of the United Kingdom that seeks to liberalise and regulate the market for legal services in England and Wales, to encourage more competition and to provide a new route for consumer complaints...
allows the court to order a party who loses against pro bono representation to make an appropriate charitable donation
Charity (practice)
The practice of charity means the voluntary giving of help to those in need who are not related to the giver.- Etymology :The word "charity" entered the English language through the Old French word "charité" which was derived from the Latin "caritas".Originally in Latin the word caritas meant...
in lieu of costs. These provisions come into force progressively from 30 June to 1 October 2008.
There are specific exceptions to the principle for:
- In-house lawyers;
- Conditional fee agreements;
- Legal aidLegal aidLegal aid is the provision of assistance to people otherwise unable to afford legal representation and access to the court system. Legal aid is regarded as central in providing access to justice by ensuring equality before the law, the right to counsel and the right to a fair trial.A number of...
; and - Litigants in person.
Standard and indemnity bases
Costs awarded on the standard basis must be proportional. Any doubt as to the costs is resolved in favour of the paying party.Costs awarded on the indemnity basis need not be proportional. Any doubt as to the costs is resolved in favour of the receiving party.
Proportionality
In considering proportionality, the court should have regard to the seven pillars of wisdom. The court should adopt a two-stage approach:- Compare the total costs claimed against the total benefits gained by the successful party:
- If the total costs are proportionate to the total benefits:
- a) Perform an item by item test of reasonableness;
— if they are not proportionate:
- b) Perform an item by item test of necessity.
Assessment of inter partes costs
Where a party is awarded costs against another they are known as inter partes costs or between party costs. Such costs are usually assessed on the standard basis. The successful party may not be awarded the entirety of their legal costs, as the costs incurred will be assessed by an officer of the court. This can be done in one of two ways.Summary assessment
The simplified procedure is known as summary assessment under which the court will consider a schedule of the costs incurred which will usually be no more than two pages long and is often only a single page. This is the usual method on the Fast Track, for hearings lasting no longer than a single day, for certain appeal hearings and for the costs of the paying party in detailed assessment hearings.However, summary assessment is not permitted for claims:
- On behalf of children or mental patients; or
- Funded by the Legal Services CommissionLegal Services CommissionThe Legal Services Commission is an executive non-departmental public body of the Ministry of Justice that is responsible for the operational administration of legal aid in England and Wales.-Overview:...
;
— or where:
- Paying party can raise substantial grounds; or
- Costs have been agreed by the parties.
Detailed assessment
For more complex cases a process, formerly called a taxation of costsTaxation of costs
Taxation of costs, now known as Detailed Assessment in English law following the Civil Procedure Act 1998, is a ministerial function performed by a court upon the resolution of case. It involves entering the various costs and their amounts against the party against whom those costs have been...
, now known as detailed assessment, is used. It is unrelated to "tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
" in the sense of a method of raising government revenue. The successful party must file with the court a detailed breakdown of the costs and disbursements incurred, known as a bill of costs
Bill of costs
A bill of costs is an itemized list what expenses a prevailing party in a lawsuit or action needs to pay for services procured from a lawyer. It can have varying levels of detail, and should describe the nature of the work done by the lawyer for the client, and any other expenses incurred...
which sets out the successful party's claim. The bill is usually prepared by a law costs draftsman
Law Costs Draftsman
In English law, a law costs draftsman is a specialist lawyer who settles the legal costs of a court case. The role of the law costs draftsman centres around a procedure known as the detailed assessment of costs, which is controlled by statute in England and Wales...
, whose skill is often as essential to successful litigation as that of a solicitor or barrister. An officer of the court, Costs Judge or District Judge will then assess the reasonableness of the costs with reference to a statutory schedule of limits of entitlements of costs, together with legal precedents, unless the costs can be agreed between the parties. The level of reduction can mean that the bill is reduced in some instances substantially, but in most cases at least 80% of the costs originally sought will be allowed. A court order for costs is enforceable as a debt against the unsuccessful party.
Either party can appeal against a detailed assessment, to a Costs Judge or District Judge of the High Court if the assessment was made by a court officer, or by the usual routes of appeal if the assessment was made by a judge.
Solicitor-client costs
The other type of costs, aside from inter partes costs, is called solicitor-client costs and are usually assessed on the indemnity basis. In general, lawyers in England and Wales are not permitted to work for a share of damagesDamages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
awarded as this would amount to champerty
Champerty
Champerty and maintenance are doctrines in common law jurisdictions, that aim to preclude frivolous litigation. "Maintenance" is the intermeddling of a disinterested party to encourage a lawsuit...
. A client who is unhappy with a lawyer's invoice
Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms...
for services can, in certain jurisdictions, apply to the court for an order or invoke a statutory procedure whereby the costs are assessed for their reasonableness by an officer of the court, for example a judge. This is also called detailed assessment. There are statutory time limits on applying for such a procedure. The frequent result is that the lawyer's invoice is decreased. If the bill is reduced by one fifth or more the solicitor will pay for the process of assessment, but otherwise the client will pay. In some jurisdictions if the client does not pay the lawyer, the lawyer has a cause of action for his own lawsuit if the client does not elect to arbitrate the attorney's bill. The client can alternatively apply to the Law Society
Law Society of England and Wales
The Law Society is the professional association that represents the solicitors' profession in England and Wales. It provides services and support to practising and training solicitors as well as serving as a sounding board for law reform. Members of the Society are often consulted when important...
for a remuneration certificate in respect of costs arising from other than litigation.
Costs in third-party claims
Sometimes a defendant brings a claim, for a contributionContribution
Contribute may refer to:*Adobe Contribute Web editing softwareContribution may refer to:*Donation*Sharing*Payment*Contribution : a payment between defendants with joint and several liability to apportion liability....
or an indemnity
Indemnity
An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnitor may or may not be responsible for the loss suffered by the indemnitee...
towards damages, against a third party. For example, a diner claims against a restaurant for a dose of food poisoning and the restaurant claims against their supplier of shellfish
Shellfish
Shellfish is a culinary and fisheries term for exoskeleton-bearing aquatic invertebrates used as food, including various species of molluscs, crustaceans, and echinoderms. Although most kinds of shellfish are harvested from saltwater environments, some kinds are found only in freshwater...
. Again, "costs follow the event". If the restaurant successfully defends the claim, they pay the supplier's costs and recover the same amount from the unsuccessful claimant. This can cause injustice when the unsuccessful claimant is insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
and the successful defendant is still liable for third-party costs. The courts will only rarely allow a "cut through" of the third-party's costs to the claimant but the interests of justice prevail.
Costs against non-parties
Section 51 of the Supreme Court Act 1981 gives the court wide discretion in awarding costs and non-parties are not immune. This is particularly relevant in cases of champerty and maintenanceChamperty and maintenance
Champerty and maintenance are doctrines in common law jurisdictions, that aim to preclude frivolous litigation. "Maintenance" is the intermeddling of a disinterested party to encourage a lawsuit...
. BTE insurers are not liable for such costs.
Costs orders
The order that a judge gives as to costs determines who will be the paying and who the receiving party. The amount of costs remains to be determined by assessment. Common costs Orders, other than on the Small Claims Track, are:| Order | Effect |
|---|---|
| Costs (in any event) | Costs to receiving party no matter what happens subsequently |
| Costs in the case/ application | Costs of this proceedings awarded |
| Costs reserved | For end of trial (costs in the case if no other order made then) |
| Costs thrown-away | Costs of the applicant in, for example, a successful application to set-aside an order |
| Costs of and caused by | Costs of other parties when a party, for example, amends a case – costs of attending hearing and own consequential amendments |
| Costs here and below | Includes costs in inferior courts (but appeal from Divisional Court cannot award costs below Divisional Court) |
| No order as to costs/ Each party to pay his own costs | — |
Wasted costs
A Party has to pay the other Party's costs that have been incurred unnecessarily, for example, if a Court hearing is postponed due to a Party not turning up at Court and the other Party has had to pay a Brief fee for a BarristerBarrister
A barrister is a member of one of the two classes of lawyer found in many common law jurisdictions with split legal professions. Barristers specialise in courtroom advocacy, drafting legal pleadings and giving expert legal opinions...
.
Interim costs
This is likely to occur in the following situations:- Where a Party has agreed or is ordered to pay towards the other Party's costs in an on-going case, or
- Where the case has finished and, due to previously supplied costs estimates, the losing Party has an idea of the likely costs that have been incurred
one Party pays the other a sum up-front before costs have been finally assessed or agreed.