WHO IS LIABLE FOR COSTS?

If you lose the case you may have to pay the other side’s costs. There may also be costs ordered against you if you do not act reasonably throughout the case. Ultimately however it is the court that will decide the liability for the costs.

In deciding liability the court will take into account the conduct of both parties under the Civil Procedure Rules. This conduct includes:

• co-operating with the opposing party;
• disclosing and exchanging information at an early stage;
• identifying the real issues in dispute and resolving other issues out of court;
• only using litigation as a last resort;
• keeping the expense of bringing or defending a case in proportion to the issues at stake.

In bringing the action to a close the court will look at any of these, such as payment into court or offers that are made.

The court can also make the legal representatives liable for any wasted costs: a wasted costs order would arise if any of the legal representatives were found unreasonable or negligent in their actions.