Costs in the Case – Understanding costs orders

“Costs in the case” is a type of order the court makes during litigation as part of an overall case management or directions order. It means that the party who is ultimately successful in the litigation will be entitled to recover their costs from the other party, regardless of who incurred those costs.

The purpose of costs in the case orders is to ensure that the party who is successful in litigation is not out of pocket due to the litigation. This is important because it encourages people to bring legitimate claims and defend themselves against unjustified claims.

There are a few exceptions to the general rule that the successful party will be entitled to recover their costs from the other party. For example, the court may order that the successful party does not recover their costs if they have acted unreasonably or failed to comply with guidelines.

The court usually limits the amount of costs that a party can recover. This is to ensure that litigation does not become too expensive. The amount of costs that can be recovered will depend on a number of factors, including the complexity of the case, the amount of time and resources that were spent on the case, and the reasonableness of the costs that were incurred.

Our team of cost draftsmen and costs lawyers at Greener Costs are highly experienced in the area of legal costs and can effectively assist clients with a range of services. Please get in touch today to find out more.

What does ‘costs in the case’ mean?

“Costs in the case” refers to the potential recovery of legal expenses by the party that prevails in a legal proceeding. This term is commonly used in interim hearings and case management orders when the final outcome of the litigation is uncertain. It signifies that the successful party will have the opportunity to claim and be reimbursed for the costs incurred in relation to that order upon the conclusion of the proceedings.

In the Civil Procedure Rules, Practice Direction 44, the definition of the term ‘costs in the case’ is as follows:

“The party in whose favour the Court makes an order for costs at the end of the proceedings is entitled to that party’s costs of the part of the proceedings to which the order relates.”

The losing party will be obligated to cover the costs claimed by the winning party as part of the total costs incurred throughout the entire proceedings, as stipulated by the order. A similar principle applies to “costs in the case application” or “costs of the application are costs in the case.” This indicates that the successful party in the final costs order will be entitled to receive the costs associated with the application upon the conclusion of the litigation.

What other types of court orders can be made in relation to costs?

  • A “costs in any event” order, also known as a “costs follow the event” order, is a type of costs order in legal proceedings. It means that regardless of the outcome of the case or the specific issues decided, the losing party will be required to pay the costs of the winning party.
  • A “costs reserved” order is an order made by a court in legal proceedings indicating that a decision on costs will be deferred or postponed to a later stage. It means that the court will not make an immediate determination regarding which party will be responsible for paying the costs of the litigation.
  • “Order for no costs” is a specific type of order issued by a court in legal proceedings. It indicates that neither party will be awarded costs or that each party will be responsible for bearing their own costs.
  • “Costs in case/application” refers to the allocation and recovery of legal costs associated with a specific case or application in legal proceedings. It signifies that the successful party in that particular case or application will be entitled to recover the costs incurred.

What types of costs can be recovered?

In legal proceedings, various types of costs can potentially be recovered, depending on the jurisdiction and the specific rules or legislation applicable to the case. Here are some common types of costs that may be recoverable:

  • Solicitors’ fees: This includes the fees charged by the solicitor or law firm for their legal services and advice provided throughout the case.
  • Barristers’ fees: These are the fees charged by barristers, who are specialised advocates, for their representation and advocacy in court or during legal proceedings.
  • Court fees: Such fees are payable to the court for filing documents, initiating proceedings, and various court services.
  • Expert witness fees: If expert witnesses are called upon to provide specialised opinions or testimony on specific matters related to the case, their fees may be recoverable.
  • Mediation or alternative dispute resolution (ADR) costs: If the parties engage in mediation or other forms of ADR to settle the dispute, the costs associated with these processes may be recoverable.

How can Greener Costs assist?

The question of costs can be an overwhelming area of law, and the assistance of a cost expert can ensure you are complying with all of the relevant rules and guidelines. Whether you are the party to pay costs or are the receiving party, our team of expert costs draftsmen and costs lawyers can assist you.

Greener Costs is the UK’s first net positive legal costs company, and our aim is to assist your law firm in cost services whilst also helping you become more carbon neutral. Our operations are fully paperless, and we commit to planting 25 trees per instruction. At the end of the year, we will send you a report detailing how much of your emissions have been offset by instructing our team.

If you wish to speak to a member of the team here at Greener Costs, then please contact us at 01204 263047info@greenercosts.co.uk or use the online form on our website below.

 

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