If a case goes to court, the loser is usually called upon to pay some part of the winner's costs - but this is not an absolute rule. The court looks at each case on an individual basis, and exercises its discretion under the Civil Procedure Rules.
Where the loser is required to pay costs, it will not necessarily be the whole of the winner's costs. The court will consider:
- to what extent the winner's costs were reasonably incurred, and are proportionate in the circumstances of the case;
- the conduct of the parties;
- whether a party has succeeded in all or part of its case; and
- whether there have been any offers to settle.
You can get together with the opposing party (or parties) ahead of the hearing, to agree the amount of costs that will be paid by the losing party, and thereby avoid the additional costs of an assessment by the court. But bear in mind that if you win, but do not recover all of your costs from the other party, you will still be responsible for paying your solicitor's costs in full.
In some circumstances you may only be entitled to recover a fixed amount from the other party - for example, where you obtain a default judgement, or if you make a claim for a specified amount and the defendant admits the claim.
There are no rules on recovery of costs where an alternative method of dispute resolution (such as mediation) is used. In such cases it will be a matter for the parties to negotiate.
