Litigators should be aware of the typical cost orders that a Court can make.
Most final cost orders are self-explanatory, however, there are certain costs orders that the court will commonly make in proceedings before trial. The following table (most of which is set out at PD 44, para 4.2) sets out the general effect of these orders. The table is not an exhaustive list of the orders which the court may make.
Term | Effect |
Costs/Costs in any event | The party in whose favour the order is made is entitled to that party’s costs in respect of the part of the proceedings to which the order relates, whatever other costs orders are made in the proceedings. |
Costs in the case/Costs in the application | 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.
There may be occasions where different parties receive an award of costs from the court at the end of the case. In accordance with Ontulmus v Collett [2014] EWHC 4117 (QB) the party that should benefit from the ‘costs in the case’ order is the party whose final order for costs covers the period in which the ‘costs in the case’ order was made. |
Costs reserved | The decision about costs is deferred to a later occasion, but if no later order is made the costs will be costs in the case. |
Claimant’s/Defendant’s costs in case/application | If the party in whose favour the costs order is made is awarded costs at the end the proceedings, that party is entitled to that party’s costs of the part of the proceedings to which the order relates. If any other party is awarded costs at the end of the proceedings, the party in whose favour the final costs order is made is not liable to pay the costs of any other party in respect of the part of the proceedings to which the order relates. |
Costs thrown away | Where, for example, a judgment or order is set aside, the party in whose favour the costs order is made is entitled to the costs which have been incurred as a consequence. This includes the costs of –
|
Costs of and caused by | Where, for example, the court makes this order on an application to amend a statement of case, the party in whose favour the costs order is made is entitled to the costs of preparing for and attending the application and the costs of any consequential amendment to his own statement of case. |
Costs here and below | The party in whose favour the costs order is made is entitled not only to that party’s costs in respect of the proceedings in which the court makes the order but also to that party’s costs of the proceedings in any lower court. In the case of an appeal from a Divisional Court the party is not entitled to any costs incurred in any court below the Divisional Court. |
No order as to costs
Each party to pay own costs |
Each party is to bear that party’s own costs of the part of the proceedings to which the order relates, regardless of the costs order the court makes at the end of the proceedings. |
It is also important to note that where a court order makes no mention of costs, CPR 44.10 provides that the general rule is that no party is entitled to costs.
There are, however, exceptions set out at CPR 44.10(2).
Where the court makes –
(a) an order granting permission to appeal;
(b) an order granting permission to apply for judicial review; or
(c) any other order or direction sought by a party on an application without notice,
and its order does not mention costs, it will be deemed to include an order for applicant’s costs in the case.