Technology &
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Costs & Assessment of Costs - Briefing Note
Costs are dealt with in parts 43 to 48 of the Civil Procedural Rules. There are new provisions in relation to costs particularly with respect to: Informing clients of costs orders;
- Providing the court with estimates of costs;
- Summary assessment of costs;
- Interim orders for costs; and
- Interest on costs.
Unless the court decides not to order an assessment of costs where, for example, it orders costs to be ‘cost in the case’ it may either make a summary assessment of costs or order a detailed assessment to take place. A court will generally make a summary assessment of costs at any hearing which lasts for less than one day.
You should note that where the court makes an order which does not mention costs no party is entitled to costs in relation to that order.
Summary & detailed assessments
A summary assessment is where the court in making an order for costs assesses those costs and orders payment of a sum of money in respect of them.
A detailed assessment is a procedure by which the amount of costs is decided by a costs officer at a later date in accordance with part 47 under the Civil Procedure Rules.
The provision of summary assessment means that the party paying is likely to be paying the cost at an earlier stage than what they would have done under previous rules.
Interim orders for costs
Interim orders for costs are where the court decides immediately who is to pay particular costs, but does not assess the costs summarily, for example, after a trial lasting more than a day so that the final amount of costs payable has to be fixed by detailed assessment, the court may order the paying party to pay a sum or sums on account of the ultimate liability for costs.
Interest on costs
The court has power to award interest on costs from a date before the date of the order, thereby compensating the receiving party for the delay between incurring the costs and receiving payment.
Standard basis or indemnity basis
The amount of costs to be paid by one party to the other can be assessed on the standard basis or on the indemnity basis. The basis to be used is to be decided when the court decides that a party should pay the costs of another. Costs that are unreasonably incurred or unreasonable in amount are not allowed on either basis.
The standard basis is a usual basis for assessment where only costs which are proportionate to the matters in issue are allowed and any doubt as to whether the costs were reasonably incurred or reasonable and proportionate in amount is resolved in favour of the paying party. On the indemnity basis any such doubts are a result in favour of the receiving parties.
Payment of Costs
A party must normally pay similarly assessed costs awarded against them within 14 days of the assessment but the court can extend that time, order direct payment by instalments, or defer the liability to pay costs until the end of the proceedings so that they can be set off against any costs or judgment to which the paying party becomes entitled.
NEED TO KNOW MORE?
For further information, contact Maitland Kalton or Julian Danobeitia. Should you prefer to telephone, call us on +44 (0)207 278 1817.
Kaltons Solicitors, Suite 302, Spitfire Studios, 63-71 Collier Street, London, N1 9BE. Telephone +44 (0)20 7278 1817; Fax: +44 (0)207 278 1835.
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