Deck 2: The Nature, Extent, and Recovery of Legal Costs

Question 1

Which of the following statements is correct?

A) The winner will get his costs paid for by the loser.
B) The court has a general discretion to make an award of costs between the parties where the claim is discontinued by the Claimant.
C) The court has no discretion when awarding costs where a valid Part 36 offer has been accepted with the relevant period.
D) The parties' pre-action conduct is not taken into account when assessing costs.

Answer 1

C

Question 2

When advising your client on the recovery of legal costs in a commercial claim, which statement below best reflects the true costs position?

A) If you win you will recover most of your legal costs and disbursements.
B) If you lose you will have to pay your opponent's legal costs and disbursements.
C) Whether you win or lose you will have to pay your own disbursements.
D) Whether you win or lose you may be responsible for some or all of your opponent's legal costs and disbursements.

Answer 2

D

Question 3

When the court decides on the amount of costs to award a party, which of the following will it not take into account?

A) The complexity of the matter.
B) The time spent on the case.
C) The conduct of the parties.
D) The number of parties to the action.

Answer 3

D

Question 4

The indemnity principle can be defined as follows - which is correct?

A) If there is any doubt whether the costs have been reasonably incurred and are reasonable in amount, then the doubt will be resolved in favour of the paying party.
B) The winning party cannot recover more costs from his opponent than he has paid to his own solicitor.
C) In a claim where there are two Defendants either Defendant is permitted to seek an indemnity from the other if thought appropriate.
D) The Claimant on discontinuance of his claim against the Defendant will indemnify him in respect of his costs.

Question 5

'costs in the case' is a costs order made by the court where a party to an application has been successful and is awarded the costs of the application no matter who wins the eventual trial.

Question 6

In your claimant client's personal injury case, which of the following most accurately describes the costs position should he lose at trial

A) He may be ordered to pay all of his opponent's costs.
B) He may be ordered to pay all his own costs
C) Unless he has acted fraudulently or not beaten a part 36 offer, he will only have to bear his own costs and not those of the opponent.
D) Personal injury claims are excluded from the new QOCS.