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Summary ULAW LPC, Dispute Resolution Chapter Readings
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ULAW LPC, Dispute Resolution Chapter Readings
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DR – WS6 Tactical Applications and Settlement TIFF LIAOChapter 10.1 – 10.3.5
10.1 INTRODUCTION
10.2 APPLICATIONS GENERALLY
READ FOR WS5
10.3 INTERIM COSTS
COSTS OF APPLYING FOR OR OPPOSING AN APPLICATION
- Any interim application will involve the parties in expense.
- A party may be involved in:
Collecting evidence
Interviewing witnesses
Conducting a site visit
Negotiation etc
- The APPLICANT will prepare the notice of applications + supporting witness statement.
- A court fee is payable for making the application.
- The RESPONDENT will prepare a witness statement in response.
- The MORE COMPLEX the situation, the greater the costs involved – cost of travelling to and from the court, the advocate dealing
with the application.
‘PAY AS YOU GO’ LITIGATION
- At the END of any interim application, the judge may decide that one party should pay the other party’s costs
This is often called ‘pay as you go’ litigation.
- The general costs rule applies, namely, the loser pays the winner’s costs.
- So if the application is granted, it is normal to order the RESPONDENT to pay the applicant’s costs.
But the type of costs order will depend on the nature of the application,
interim costs orders usually reflect the conduct of the parties.
For example, a party who wants permission to amend their statement of case starts from a weak position, as they want
the court to allow them to do something. Hence, the normal order is that such an APPLICANT pays the respondent’s costs
of the application, which may include additional costs,
eg, if the RESPONDENT has to amend, file and serve their own statement of case as a result of the amendment. Such a
costs order would be expressed as ‘costs of and caused by’
POSSIBLE ORDERS
the party named in the order and thereby in whose favour the order is made (eg, claimant’s
costs) is entitled to the costs in respect of the part of the proceedings to which the order
[Named party’s] costs relates, whatever other costs orders are made in the proceedings.
([Named party’s] costs in These costs are normally summarily assessed and ordered to be paid within 14 days.
any event)
no party is named.
At this interim stage NO PARTY is able to recover their costs of the interim hearing.
The outcome at the end of the proceedings will determine which party recovers these
Costs in the case interim costs.
(Costs in the application) The party in whose favour the court makes an order for costs at the end of the proceedings
is entitled to their costs of the part of the proceedings to which the order relates.
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TIFF LIAO
, DR – WS6 Tactical Applications and Settlement TIFF LIAO
Chapter 10.1 – 10.3.5
If the named party is awarded costs at the end of the proceedings, that party is entitled to
their costs of the part of the proceedings to which the order relates.
[Named party’s] costs in So the party NOT named in the order is NEVER entitled to recover their interim costs of the
case application.
The named party recovers their interim costs of the application only if they are ultimately
awarded costs at the conclusion of the proceedings.
Where, for example, a judgment or order is set aside, the party in whose favour the costs
order is made is entitled to the costs which have been incurred as a consequence.
This includes the costs of:
[Named party’s] costs (a) preparing for and attending any hearing at which the judgment or order which has been set aside
thrown away was made;
(b) preparing for and attending any hearing to set aside the judgment or order in question;
(c) preparing for and attending any hearing at which the court orders the proceedings or the part in
question to be adjourned;
(d) any steps taken to enforce a judgment or order which has subsequently been set aside.
Where, for example, the court makes this order on an application to amend a statement of
[Named party’s] costs of case, the party in whose favour the costs order is made is entitled to the costs of preparing
and caused by for and attending the application and the costs of any consequential amendment to their
own statement of case.
No order as to costs Each party is to bear their own costs of the part of the proceedings to which the order
(Each party to pay their relates whatever costs order the court makes at the end of the proceedings.
own costs)
If the order made at the hearing makes no mention of costs, the general rule is none are
Order no mention of costs payable in respect of that application.
always vital to ensure that the judge makes some sort of costs order.
SUMMARY ASSESSEMENT
- If the court makes an order for costs in favour of one of the parties to the application
‘claimant’s costs’, OR
‘claimant’s costs thrown away’ OR
‘defendant’s costs of and caused by’
= then the court will make a summary assessment of costs there and then.
- Any such costs are payable within 14 days, UNLESS the court orders otherwise.
- In order for the court to be able to assess the costs at the end of the application, the parties are required, not less than 24 hours
prior to the hearing, to file and serve a statement of costs.
- This provides a breakdown of the costs incurred in relation to the application.
- A model form of the statement of costs (Form N260) appears at Appendix A(13).
- If a party FAILED to comply with this requirement without reasonable excuse, this will be taken into account by the court in
deciding what costs order to make
- To help the judge carry out a summary assessment, they will take into account the guideline rates for solicitors and counsel: see
Appendix A(22) and 14.3.4.2.
- The parties may well agree the amount of costs at an interim hearing. The judge is likely to reject an agreed figure ONLY if they
consider it to be disproportionate.
- On a few occasions, the court may award fixed costs RATHER THAN making one of the orders set out above.
- Part 45 sets out:
FIXED
COSTS the occasions on which fixed costs may be granted and
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