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Costs And Enforcement Notes

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Workshop 12 Costs & Enforcing Cost

Costs and Enforcement Outcome 1: Provide Advice on Payment and Recovery of Costs General P.232???

By r 44.1 "Costs" includes fees, charges, disbursements, expenses, remuneration, legal fees, pre-action costs (r.43.2(1)), any CFA fee or AEI premium (r.44.3(6)(d)) Generally, loser pays winner's costs (r.44.2(2)(a)).In fast-track-trial Judge will make the cost order and asses the amount payable.In multi-track-trial the judge will only determine who pays the costs. A separate "costs judge" will determine the amount (failing the agreement of the parties) at a later hearing Note the Indemnity Principle: the winner cannot make a profit r.44.3(1): the court has a discretion as to: o Who is to pay costs o How much costs are o When they are to be paid It's important to manage client's expectations: they will not get 100% back (70% if on a CFA) Court considers conduct of the parties when deciding costs Mars UK Ltd v Teknowledge Interest P.231?

Generally, interest is not payable on costs before judgment (r.36.14(3)) However, it can be at the court's discretion (r.44.3(6)(g)) and (SCA 1981, s35A or CCA 1984, s69) Standard Basis. P.233?

The costs must be proportionately and reasonably incurred and reasonable in amount Where there is doubt, give the benefit of the doubt to the paying party Are the total overall costs Proportionate? Apply factors in r.44.3(5): r.44.3(5): Costs incurred are proportionate if they bear a reasonable

relationship to - (a) the sums in issue in the proceedings; (b) the value of any non-monetary relief in issue in the proceedings; (c) the complexity of the litigation; Indemnity Basis (d) any additional work generated by the conduct of the paying party; and (e) any wider factors involved in the proceedings, such as reputation or

P.234?Yes This is made to punish the paying party for poor conduct during proceedings The costs must be reasonably incurred and reasonably in amount Was it reasonable to incur the item? Apply Where there is doubt, give the benefit of thefactors doubt in to r.44.4(3): the receiving party No a) Conduct of the parties overall (CONDUCT P.235) Procedure i. Conduct before & during, the proceedings, and ii. efforts made before & during the procee to resolve Fortheassessing costs dispute Was it necessary to incur the b) Amount or value of the money or property involved item?
P.236 c) Importance of the matter to the parties d) Skill, effort or specialised knowledge and The Lownds test emphasises that

responsibility involved not too high a threshold should be e) Time and effort spent on the case (time is money set with the benefit of hindsight Allow the Reduce to what No Disallow the Disallow the is a reasonable No Yes No Yes Yes Is the item reasonable initem as

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