Not every costs order results in one party having to pay the other. Where a court makes “no order as to costs,” each party bears their own costs of that hearing or application, whatever the eventual outcome of the wider case. Neither the claimant nor the defendant recovers the costs of that part of the proceedings from the other side.

It’s a straightforward-sounding order, but it has real consequences for how much of a case’s costs a party can ultimately recover, so it’s worth understanding how and why courts make it.

What Does “No Order as to Costs” Actually Mean?

Under CPR 44.2, the general rule is that the unsuccessful party will be ordered to pay the costs of the successful party. A no order as to costs decision is a departure from that starting point: instead of ordering one party to pay the costs of an application, the court decides that neither side should recover the costs incurred in relation to it.

In practice, this means each party absorbs its own legal costs of preparing for and attending that interim hearing or application. If the claimants’ solicitors and the defendants’ costs teams both incurred fees dealing with the same application, neither recovers those costs of the proceedings from the other.

How Does It Differ From Other Costs Orders?

No order as to costs sits alongside several other types of costs orders a court can make at the same stage.

Costs reserved – Where costs are reserved, the decision on who is to pay is postponed, usually until the conclusion of the case, when it’s dealt with as part of the final costs order. Read our guide to what costs reserved means. No order as to costs is different: the decision has been made, and it’s that neither party pays.

Costs in the Case – An order for costs in the case links the costs of that application to the outcome of the litigation as a whole – the party in whose favour the case ultimately decided also recovers those costs. No order as to costs breaks that link; whoever wins the case, the costs of that particular application stay where they fall.

Costs In Any Event – Costs in any event fixes liability for a hearing immediately regardless of the wider outcome. No order as to costs is, in effect, the mirror image; it fixes that neither party is entitled to the costs of that hearing.

When Do Courts Make This Order?

Courts often make no order as to costs where both sides have had some success and some failure on an application, where an issue was genuinely finely balanced, or where making any order would be disproportionate to the sums or issues involved. It’s also common where an application is resolved by agreement between the parties without a clear “winner.”

What This Means for Recovering Costs Later

Because no order as to costs finally disposes of the costs of the part of the proceedings it relates to, it isn’t revisited later. Even if the party who incurred the costs goes on to win the case overall, those costs wont be swept up into the final costs order, unlike costs reserved, which remain open for exactly that purpose.

Quick FAQs

Does no order as to costs mean the case is over?

No. It only relates to the costs of one application or hearing, not the outcome of the wider proceedings.

Can I recover these costs later if I win the case?

Generally no. Once the court makes a final decision on costs of that part of the proceedings, it isn’t reopened at the end of the case.

Is no order as to costs a common outcome?

Yes, particularly at interim hearings where the issues are evenly balanced or where the application is resolved by consent.

How Greener Costs Can Help

Our team of costs lawyers and costs draftsmen advises solicitors and their clients on all types of costs orders, including no order as to costs, and how these decisions affect overall costs recovery.

If you’d like advice on a costs order made in your case, get in touch with the Greener Costs team today on info@greenercosts.co.uk or by filling out our enquiry form below for a free, no-obligation discussion.