Overview of Costs
The main Civil Procedure Rules are:
- CPR 44.2-44.4 & 44.7
- 44 PD 6.1 – 6.2
Costs are an important consideration in litigation.
The court's power to order a party to pay an opponent's costs is used to
influence parties’ behavior.
The court’s jurisdiction to order
costs
The court has full power to determine by whom and to what extent the costs of
proceedings are to be paid.
The court will consider making a costs order at the end of any interim hearing as
well as at the end of the trial.
If the judge does not make an order as to costs, each party will simply pay its
costs.
Different types of litigation
costs
Solicitor-client costs
These are costs payable by the client to the solicitor under the contract of
retainer.
The client is primarily responsible for their solicitor’s costs.
If a party is successful in litigation, it is likely to want to seek an order from the
court that the other party should pay the legal costs it has incurred.
However, there will likely be a shortfall between the sum recovered from the
other party and the sum the client has to pay the solicitor as recorded on the
solicitor’s bill.
The indemnity principle provides that a party will not be able to recover a sum
over their liability to their solicitor.
Inter-party costs
Inter-party costs is the term used for the actual figure for costs awarded by the
court which one party has to pay the other party.
Non-party costs
The court has jurisdiction to award costs against a non-party.
This means they require a party who is not a party to the proceedings to pay
something towards the costs.
The main Civil Procedure Rules are:
- CPR 44.2-44.4 & 44.7
- 44 PD 6.1 – 6.2
Costs are an important consideration in litigation.
The court's power to order a party to pay an opponent's costs is used to
influence parties’ behavior.
The court’s jurisdiction to order
costs
The court has full power to determine by whom and to what extent the costs of
proceedings are to be paid.
The court will consider making a costs order at the end of any interim hearing as
well as at the end of the trial.
If the judge does not make an order as to costs, each party will simply pay its
costs.
Different types of litigation
costs
Solicitor-client costs
These are costs payable by the client to the solicitor under the contract of
retainer.
The client is primarily responsible for their solicitor’s costs.
If a party is successful in litigation, it is likely to want to seek an order from the
court that the other party should pay the legal costs it has incurred.
However, there will likely be a shortfall between the sum recovered from the
other party and the sum the client has to pay the solicitor as recorded on the
solicitor’s bill.
The indemnity principle provides that a party will not be able to recover a sum
over their liability to their solicitor.
Inter-party costs
Inter-party costs is the term used for the actual figure for costs awarded by the
court which one party has to pay the other party.
Non-party costs
The court has jurisdiction to award costs against a non-party.
This means they require a party who is not a party to the proceedings to pay
something towards the costs.
