#4687 - Costs - BPC Civil Litigation

COSTS 2 key principles: * Costs follow the event * Costs within Court's discretion (exercised in accordance with Overriding Objective) Further Principles Winner should receive whole (standard-basis) costs even if only partly-successful Winner should receive whole costs even where finding of contributory negligence Bases of Assessment 2 bases of costs: * Standard basis, and * Indemnity basis Standard-basis Costs Allows costs: * which have been reasonably incurred, * which are reasonable in amount * which are proportionate to the matters in issue. Indemnity-basis Costs Covers full amount of costs Applies to: * client paying legal representation, and * Trustees recovering costs from trust fund. Methods of Assessment 2 options: * summary assessment - immediately after hearing/trial * detailed assessment - separate hearing/decision Summary Assessment Statement of costs should have been filed 24 hours before hearing Court should focus on successful party's actual costs (item-by-item) * Entitled to draw on general experience to determine sum which is reasonable and proportionate * May call whatever evidence is available at that time to determine the figure Assessed amount generally payable within 14 days of date of order * Court retains discretion to decide when paid, * any application for extension of time to pay should be supported by evidence. Failure to File Statement of Costs Should be met with a proportionate response Judge may: * adjourn for detailed assessment, * adjourn for later summary assessment with that judge/to be dealt with in writing * adjourn for short period to allow unsuccessful party a chance to consider the late Statement of Costs, Judge then makes summary assessment with added leniency to paying party Detailed Assessment Court has discretion to order detailed assessment when costs cannot be agreed. * Unless payment by/to/for benefit of a child/protected party - must order detailed assessment Quantification of costs by a costs Judge - will consider amount at an "assessment hearing" after parties given reasonable time to set out amount claimed and points in dispute in writing * Assessment carried out by District Judges in County Court or Senior Costs Office in High Court Client "care letter" by successful party's solicitor must be filed with the application Procedure Assessment proceedings must be commenced within 3 months of the judgment/order giving rise to the right to costs Commenced by successful (non-paying) party by serving "notice of commencement" with "Bill of Costs" on unsuccessful (paying) party. Paying party must serve "points of dispute" within 21 days after service of the "notice of commencement" * if fails - non-paying party may file a request for a default costs certificate Non-paying party may serve a reply within 21 days Hearing - informal * Each point in dispute taken in turn - submissions from parties - then ruling on each point Variations on "Costs follow the Event" There are 7 variations - require party to pay: 1. A proportion of the successful party's costs, 2. A specified amount in respect of successful party's costs,