Costs all

Fixed costs

Pre-set amounts of recoverable legal costs fixed by the CPR, replacing court assessment

Fixed costs application

Apply automatically to all small claims and to fast track and intermediate track cases

Fast track fixed costs

Fixed costs determined by complexity band and stage concluded under Table 12 PD45

Intermediate track fixed costs

Fixed costs determined by complexity band and stage concluded under Table 14 PD45

Complexity band

Category assigned at allocation which, together with case stage, determines recoverable fixed costs

Assessed costs

Costs decided by the court when fixed costs do not apply

When assessed costs apply

Where CPR does not fix costs or fixed costs regime does not apply

Standard basis

Costs allowed if proportionate and reasonably incurred; doubts resolved in favour of PAYING party

Indemnity basis

Costs allowed unless unreasonably incurred; doubts resolved in favour of RECEIVING party

Summary assessment

Court determines amount of costs immediately at end of hearing

When summary assessment is used

At end of fast track trials and at end of interim hearings lasting not more than one day

Summary assessment requirement

Parties must prepare N260 statements of costs

N260 statement

Summary statement of costs used for summary assessment

N260 timing

Must be filed and served at least 24 hours before hearing

Summary assessment approach

Broad brush assessment by judge at end of hearing

Detailed assessment

Separate, formal process where costs are assessed later, item by item

When detailed assessment is used

Where costs are not agreed and not summarily assessed

Detailed assessment trigger

Court orders one party to pay costs but does not fix the amount

Notice of commencement

Document served by receiving party to start detailed assessment

Bill of costs

Detailed breakdown of costs served on paying party

Points of dispute

Objections to bill of costs served by paying party within 21 days

Detailed assessment hearing

Hearing before costs officer to determine payable amount

Interim stage

Any stage after proceedings have started but before final trial or judgment

Interim costs order

Costs order made following an interim application

Interim costs assessment rule

Judge summarily assesses costs immediately after interim hearing

Costs in any event

Winning party on interim application recovers costs regardless of who wins at trial

Effect of costs in any event

Interim costs are locked in and payable irrespective of final outcome

When costs in any event is used

Clear success on application and application was justified

Costs in the case

Interim costs follow the outcome of the trial

Effect of costs in the case

Party who wins at trial recovers costs of interim hearing

When costs in the case is used

Mixed success or where trial outcome determines true winner

Claimant’s costs in the case

Claimant recovers interim costs only if claimant wins at trial

Effect of claimant’s costs in the case

If claimant loses trial, claimant does not pay defendant’s interim costs

Defendant’s costs in the case

Defendant recovers interim costs only if defendant wins at trial

Costs reserved

Decision on interim costs postponed to a later stage

Effect of costs reserved

If no later decision, costs automatically become costs in the case

When costs are reserved

Where facts or conduct need to be assessed later

Costs thrown away

Costs awarded for steps that should never have happened

When costs are thrown away

Where an order is set aside or hearing wasted due to one party’s fault

Scope of costs thrown away

Covers preparation, attendance, and wasted hearings

Costs of and caused by

Party pays costs caused by its own procedural step

Typical example of costs of and caused by

Claimant amends pleadings and pays defendant’s resulting costs

Costs here and below

Party recovers costs of current proceedings and lower courts

Exception to costs here and below

No recovery of costs below Divisional Court on appeal from it

No order as to costs

Each party bears its own costs of the interim hearing

When no order as to costs is made

Partial success or fairness requires no costs shifting

Court considers

success, conduct, necessity of application, wasted costs, and proportionality