Statutory Instruments 1998 No. 3132 (L. 17)
The Civil Procedure Rules 1998
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PART 43

SCOPE OF COST RULES AND DEFINITIONS




Contents of this Part
Scope of this Part Rule 43.1
Definitions and application Rule 43.2
Meaning of summary assessment Rule 43.3
Meaning of detailed assessment Rule 43.4

Scope of this Part
     43.1 This Part contains definitions and interpretation of certain matters set out in the rules about costs contained in Parts 44 to 48.

(Part 44 contains general rules about costs; Part 45 deals with fixed costs; Part 46 deals with fast track trial costs; Part 47 deals with the detailed assessment of costs and related appeals and Part 48 deals with costs payable in special cases)

Definitions and application
    
43.2  - (1) In Parts 44 to 48, unless the context otherwise requires - 

    (a) "costs" includes fees, charges, disbursements, expenses,remuneration, reimbursement allowed to a litigant in person under rule 48.6 and any fee or reward charged by a lay representative for acting on behalf of a party in proceedings allocated to the small claims track;

    (b) "costs judge" means a taxing master of the Supreme Court;

    (c) "costs officer" means - 

      (i) a costs judge;

      (ii) a district judge; and

      (iii) an authorised court officer;

    (d) "authorised court officer" means any officer of - 

      (i) a county court;

      (ii) a district registry;

      (iii) the Principal Registry of the Family Division; or

      (iv) the Supreme Court Costs Office,

    whom the Lord Chancellor has authorised to assess costs.

    (e) "fund" includes any estate or property held for the benefit of any person or class of person and any fund to which a trustee or personal representative is entitled in his capacity as such;

    (f) "receiving party" means a party entitled to be paid costs;

    (g) "paying party" means a party liable to pay costs;

    (h) "assisted person" means an assisted person within the statutory provisions relating to legal aid; and

    (i) "fixed costs" means the amounts which are to be allowed in respect of solicitors' charges in the circumstances set out in Part 45.

    (2) The costs to which Parts 44 to 48 apply include - 

    (a) the following costs where those costs may be assessed by the court - 

      (i) costs of proceedings before an arbitrator or umpire;

      (ii) costs of proceedings before a tribunal or other statutory body; and

      (iii) costs payable by a client to his solicitor; and

    (b) costs which are payable by one party to another party under the terms of a contract, where the court makes an order for an assessment of those costs.

Meaning of summary assessment
    
43.3 "Summary assessment" means the procedure by which the court, when making an order about costs, orders payment of a sum of money instead of fixed costs or "detailed assessment".

Meaning of detailed assessment
    
43.4 "Detailed assessment" means the procedure by which the amount of costs is decided by a costs officer in accordance with Part 47.



PART 44

GENERAL RULES ABOUT COSTS




Contents of this Part
Scope of this Part Rule 44.1
Solicitor's duty to notify client Rule 44.2
Court's discretion and circumstances to be taken into account when exercising its discretion as to costs Rule 44.3
Basis of assessment Rule 44.4
Factors to be taken into account in deciding the amount of costs Rule 44.5
Fixed costs Rule 44.6
Procedure for assessing costs Rule 44.7
Time for complying with an order for costs Rule 44.8
Costs on the small claims track and fast track Rule 44.9
Limitation on amount court may award where a claim allocated to the fast track settles before trial Rule 44.10
Costs following allocation and re-allocation Rule 44.11
Cases where costs orders deemed to have been made Rule 44.12
Special situations Rule 44.13
Court's powers in relation to misconduct Rule 44.14

Scope of this Part
    
44.1 This Part contains general rules about costs and entitlement to costs.

(The definitions contained in Part 43 are relevant to this Part)

Solicitor's duty to notify client
    
44.2 Where - 

    (a) the court makes a costs order against a legally represented party; and

    (b) the party is not present when the order is made,

the party's solicitor must notify his client in writing of the costs order no later than 7 days after the solicitor receives notice of the order.

Court's discretion and circumstances to be taken into account when exercising its discretion as to costs
    
44.3  - (1) The court has discretion as to - 

    (2) If the court decides to make an order about costs - 

    (3) The general rule does not apply to the following proceedings - 

    (4) In deciding what order (if any) to make about costs, the court must have regard to all the circumstances, including - 

(Part 36 contains further provisions about how the court's discretion is to be exercised where a payment into court or an offer to settle is made under that Part)

    (5) The conduct of the parties includes - 

    (6) The orders which the court may make under this rule include an order that a party must pay - 

    (7) Where the court would otherwise consider making an order under paragraph (6)(f), it must instead, if practicable, make an order under paragraph (6)(a) or (c).

    (8) Where the court has ordered a party to pay costs, it may order an amount to be paid on account before the costs are assessed.

    (9) Where a party entitled to costs is also liable to pay costs the court may assess the costs which that party is liable to pay and either - 

Basis of assessment
    
44.4  - (1) Where the court is to assess the amount of costs (whether by summary or detailed assessment) it will assess those costs - 

but the court will not in either case allow costs which have been unreasonably incurred or are unreasonable in amount.

(Rule 48.3 sets out how the court decides the amount of costs payable under a contract)

    (2) Where the amount of costs is to be assessed on the standard basis, the court will - 

(Factors which the court may take into account are set out in rule 44.5)

    (3) Where the amount of costs is to be assessed on the indemnity basis, the court will resolve any doubt which it may have as to whether costs were reasonably incurred or were reasonable in amount in favour of the receiving party.

    (4) Where - 

the costs will be assessed on the standard basis.

    (5) This rule and Part 47 (detailed assessment of costs by a costs officer) do not apply to the extent that regulations made under the Legal Aid Act 1988[
55] determine the amount payable.

    (6) Where the amount of a solicitor's remuneration in respect of non-contentious business is regulated by any general orders made under the Solicitors Act 1974[56], the amount of the costs to be allowed in respect of any such business which falls to be assessed by the court will be decided in accordance with those general orders rather than this rule and rule 44.5.

Factors to be taken into account in deciding the amount of costs
     44.5  - (1) The court is to have regard to all the circumstances in deciding whether costs were - 

    (2) In particular the court must give effect to any orders which have already been made.

    (3) The court must also have regard to - 

(Rule 35.4(4) gives the court power to limit the amount that a party may recover with regard to the fees and expenses of an expert)

Fixed costs
    
44.6 A party may recover the fixed costs specified in Part 45 in accordance with that Part.

Procedure for assessing costs
    
44.7 Where the court orders a party to pay costs to another party (other than fixed costs) it may either - 

unless any rule, practice direction or other enactment provides otherwise.

(The costs practice direction sets out the factors which will affect the court's decision under this rule)

Time for complying with an order for costs
    
44.8 A party must comply with an order for the payment of costs within 14 days of - 

(Part 47 sets out the procedure for detailed assessment of costs)

Costs on the small claims track and fast track
    
44.9  - (1) Part 27 (Small claims) and Part 46 (Fast track trial costs) contain special rules about - 

    (2) Those special rules do not apply until a claim is allocated to a particular track.

Limitation on amount court may allow where a claim allocated to the fast track settles before trial
    
44.10  - (1) Where the court - 

it may not allow, in respect of those advocate's costs, an amount that exceeds the amount of fast track trial costs which would have been payable in relation to the claim had the trial taken place.

    (2) When deciding the amount to be allowed in respect of the advocate's costs, the court shall have regard to - 

    (3) In this rule, "advocate" and "fast track trial costs" have the meanings given to them by Part 46.

(Part 46 sets out the amount of fast track trial costs which may be awarded)

Costs following allocation and re-allocation
    
44.11  - (1) Any costs orders made before a claim is allocated will not be affected by allocation.

    (2) Where - 

then unless the court orders otherwise, any special rules about costs applying - 

(Part 26 deals with the allocation and re-allocation of claims between tracks)

Cases where costs orders deemed to have been made
    
44.12  - (1) Where a right to costs arises under - 

a costs order will be deemed to have been made on the standard basis.

    (2) Interest payable pursuant to section 17 of the Judgments Act 1838[
57] or section 74 of the County Courts Act 1984[58] on the costs deemed to have been ordered under paragraph (1) shall begin to run from the date on which the event which gave rise to the entitlement to costs occurred.

Special situations
     44.13  - (1) Where the court makes an order which does not mention costs no party is entitled to costs in relation to that order.

    (2) The court hearing an appeal may, unless it dismisses the appeal, make orders about the costs of the proceedings giving rise to the appeal as well as the costs of the appeal.

    (3) Where proceedings are transferred from one court to another, the court to which they are transferred may deal with all the costs, including the costs before the transfer.

    (4) Paragraph (3) is subject to any order of the court which ordered the transfer.

Court's powers in relation to misconduct
    
44.14  - (1) The court may make an order under this rule where - 

    (2) Where paragraph (1) applies, the court may - 

    (3) Where - 

the party's solicitor must notify his client in writing of the order no later than 7 days after the solicitor receives notice of the order.



PART 45

FIXED COSTS




Contents of this Part
Scope of this Part Rule 45.1
Amount of fixed commencement costs Rule 45.2
When defendant liable for fixed commencement costs Rule 45.3
Costs on entry of judgment Rule 45.4
Miscellaneous fixed costs Rule 45.5

Scope of this Part
    
45.1  - (1) This Part sets out the amounts which, unless the court orders otherwise, are to be allowed in respect of solicitors' charges in the cases to which this Part applies.

(The definitions contained in Part 43 are relevant to this Part)

    (2) This Part applies where - 

    (a) the only claim is a claim for a specified sum of money and - 

      (i) judgment in default is obtained under rule 12.4(1);

      (ii) judgment on admission is obtained under rule 14.4(3);

      (iii) judgment on admission on part of the claim is obtained under rule 14.5(6);

      (iv) summary judgment is given under Part 24;

      (v) the court has made an order to strike out (GL) a defence under rule 3.4(2)(a) as disclosing no reasonable grounds for defending the claim; or

      (vi) rule 45.3 applies; or

    (b) the only claim is a claim where the court gave a fixed date for the hearing when it issued the claim and judgment is given for the delivery of goods,

and in either case the value of the claim exceeds 25.

(The practice direction supplementing rule 7.9 sets out the types of case where a court may give a fixed date for a hearing when it issues a claim)

    (3) The rules in this Part do not apply to the extent that regulations under the Legal Aid Act 1988[
59] determine the amount of costs payable to legal representatives.

    (4) Any appropriate court fee will be allowed in addition to the costs set out in this Part.

Amount of fixed commencement costs
     45.2  - (1) The claim form may include a claim for fixed commencement costs.

    (2) The amount of fixed commencement costs which the claim form may include shall be calculated by reference to the following Table (Table 1).

    (3) Additional costs may also be claimed in the circumstances specified in Table 3.

    (4) The amount claimed, or the value of the goods claimed if specified, in the claim form is to be used for determining the band in the Table that applies to the claim.


TABLE 1 Fixed costs on commencement of a claim
Relevant Band Where the claim form is served by the court or by any method other than personal service by the claimant Where

  • the claim form is served personally by the claimant; and

  • there is only one defendant

  • Where there is more than one defendant, for each additional defendant personally served at separate addresses by the claimant
    Where - 

  • the value of the claim exceeds 25 but does not exceed 500

  • 50 60 15
    Where - 

  • the value of the claim exceeds 500 but does not exceed 1000

  • 70 80 15
    Where - 

  • the value of the claim exceeds 1000 but does not exceed 5000; or

  • the only claim is for delivery of goods and no value is specified or stated on the claim form

  • 80 90 15
    Where - 

  • the value of the claim exceeds 5000

  • 100 110 15




    Notes


    [55] 1988 c.34.back

    [56] 1974 c.47.back

    [57] 1838 c.110. Section 17 was amended by S.I. 1998/2940.back

    [58] 1984 c.28. Section 74 was amended by section (2) of the Private International Law (Miscellaneous Provisions) Act 1995 (c.42).back

    [59] 1988 c.34.back



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    Prepared 9 February 1999