“Costs follow the event” is one of the most quoted phrases in civil litigation, and one of the most important for anyone weighing up whether to bring or defend a claim. In short, it means the losing party will usually be ordered to pay a significant proportion of the winning party’s legal costs.

It sounds simple, and at its core it is. But the general rule comes with real nuance in how courts apply it, when they’ll depart from it, and how it interacts with other parts of civil procedure – all of which matters for anyone advising on litigation risk.

What Does “Costs Follow the Event” Actually Mean?

The phrase describes the default position that whichever party succeeds in litigation – the “event” – is normally entitled to recover its costs from the party that lost. It exists to compensate the successful party for costs reasonably incurred defending or pursuing a claim, and to discourage parties from bringing or resisting proceedings without good reason.

Crucially, “the event” doesn’t always mean the case as a whole. It can also apply to a specific application or hearing within wider proceedings, which is why court orders on costs are made throughout a case, not just at its conclusion.

The Legal Basis: CPR 44.2

The rule is set out in CPR 44.2(2)(a): if the court decides to make an order about costs, the general rule is that the unsuccessful party will be ordered to pay the costs of the successful party. This sits within the wider costs provisions of the Civil Procedure Rules, which give the court broad discretion over whether costs are payable, by whom, and in what amount.

CPR 44.2(2)(b) makes clear the court may make a different order, and CPR 44.2(4) sets out matters the court must consider, including whether a party has succeeded on part of its case even if not wholly successful, and the conduct of the parties throughout the proceedings.

When Will the Court Depart From the General Rule?

The general rule is a starting point, not a guarantee. Courts regularly depart from it, particularly where:

• A party has succeeded on some issues but not others, leading to an issue-based costs order or proportionate costs order rather than a simple win-or-lose outcome.
• One party’s conduct before or during proceedings was unreasonable, such as failing to engage with alternative dispute resolution or pursuing points that were always likely to fail.
• A party made an offer to settle that the other side failed to beat, which can affect costs liability regardless of who technically “won.”
• The claim was discontinued or settled before trial, meaning there’s no clear “event” to attach costs to in the usual way.

This is why costs orders can look quite different from case to case, even where the underlying principle, costs follow the event, is exactly the same starting point in each.

Costs Follow the Event and Fixed Recoverable Costs

One significant development affecting how this principle plays out in practice was the extension of the Fixed Recoverable Costs (FRC) regime from October 2023. Since then, many more claims – including a substantial range of personal injury cases – have recoverable costs fixed by reference to a scale, rather than assessed individually against what was actually and reasonably spent.

Costs still follow the event in these cases: the losing party remains liable to pay the winning party’s costs. What changes is the amount. Rather than a detailed assessment of actual costs incurred, the recoverable sum is largely determined by the value and track of the claim, regardless of the actual legal spend. For solicitors handling personal injuries and other claims now within the FRC regime, this makes early case valuation and track allocation just as important as the underlying merits when it comes to managing costs risk.

Costs Follow the Event vs Other Costs Orders

“Costs that follow the event” describes the general rule, but it isn’t the only costs order a court can make. Depending on how a case or application unfolds, the court might instead order costs in the case, costs in any event, no order as to costs, or reserve the question of costs entirely until a later stage. Each of those orders modifies or departs from the general rule in a different way, while the underlying “costs follow the event” principle remains the reference point the court starts from, see our complete guide to types of costs orders for the full picture.

What This Means in Practice

For anyone bringing or defending a claim, the practical takeaway is straightforward: success at trial usually comes with a costs benefit, but that benefit isn’t automatic or unlimited. It depends on conduct throughout the case, how offers to settle were handled, whether the claim falls within the fixed costs regime, and whether success was total or only partial.

Understanding this from the outset, rather than assuming a win guarantees full costs recovery, is one of the most valuable pieces of early advice a costs lawyer can give.

Quick FAQs

Does the winning party always recover 100% of their costs?

No, even where costs follow the event, recovery is rarely total; the amount is subject to assessment and may be reduced for proportionality or unreasonableness.

Can a losing party avoid paying any costs at all?

Yes, in some circumstances, for example, where the winning party behaved unreasonably, or where a claim falls within a fixed regime that limits recovery regardless of outcome.

Does costs follow the event apply outside the High Court?

Yes. The general rule under CPR 44.2 applies across civil litigation generally, not just High Court proceedings, though the specific costs regime that applies can vary by claim type and value.

How Greener Costs Can Help

Our team of costs lawyers and costs draftsmen advises solicitors and their clients on costs risk from the outset of a claim, including how the general rule and its exceptions are likely to apply, and how the fixed costs regime affects recovery.

If you’d like advice on costs exposure in your case, get in touch with the Greener Costs team today for a free, no-obligation discussion; call us on 01204 263047 or email info@greenercosts.co.uk.