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Does the losing party pay costs of case


Lawdit Solicitors - Expert Author

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26 June 2009

There are two main points when deciding which party should pay the costs of an application or of the entire proceedings. These are:

(1) the costs payable by one party to another are in the discretion of the court (Supreme Court Act 1981, s. 51; r. 44.3(1) of the CPR); and

(2) the general rule, (see rule 44.3(2) of the CPR) that the unsuccessful party will be ordered to pay the costs of the successful party. For all you oldies - 'costs follow the event'.

Under rule 44.3(6) of the CPR, there are 7 variations from the rule that the unsuccessful party should pay the whole of the successful party's costs. These variations are:

(1) that a party must pay only a proportion of another party's costs;

(2) that a party must pay a specified amount in respect of the other side's costs;

(3) that a party must pay costs from or until a certain day only;

(4) that a party must pay costs incurred before proceedings have begun;

(5) that a party must pay costs relating only to certain steps taken in the proceedings, although an order of this type can only be made if an order in either of the forms set out at (1) or (3) would not be practicable (rule 44.3(7) ) of the CPR;

(6 ) that a party must pay costs relating only to a certain distinct part of the proceedings;

(7) that a party must pay interest on costs from or until a certain date, including a date before judgment.

All these variations restrict the amount of costs that a winning party may recover from the loser.

Riyaz Jariwalla is a solicitor who specialises in intellectual property law and commercial litigation.

About the Author

Lawdit Solicitors offer services and advice for litigation, commercial contracts, Intellectual Property and IT legal agreements. We are experts in commercial law with a heavy emphasis on Intellectual Property, Internet and e-commerce law. Lawdit is a member of the International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.

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Article Published/Sorted/Amended on Scopulus 2009-07-05 19:07:04 in Legal Articles

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