Does the losing party pay costs of case
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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);
(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
(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
(4) that a party must pay costs incurred before proceedings
(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.
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Article Published/Sorted/Amended on Scopulus 2009-07-05 19:07:04 in Legal Articles