Costs orders—the general rule


Published by a ½Û×ÓÊÓƵ Dispute Resolution expert
Practice notes

Costs orders—the general rule


Published by a ½Û×ÓÊÓƵ Dispute Resolution expert

Practice notes
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This Practice Note provides information on the general rule that the unsuccessful party will be ordered by the court to pay the successful party’s costs. It considers cases where the court has departed from the general rule, where there has been minimal recovery and where a party has won on some but not on all of the issues.

The general rule—unsuccessful party pays the successful party’s costs

If the court decides to make an order for costs, the starting point for determining which party will be awarded their costs is the general rule set out in CPR 44.2(2)(a). The general rule provides that the unsuccessful party will be ordered to pay the costs of the successful party.

For the purposes of determining who is the successful party, the proper approach is to look at the substance in order to determine who has actually won. The Court of Appeal in Day v Day (2006) referred to the decision in Bank of Credit Commerce International SA v Ali (No 3) (1999) (not reported by ½Û×ÓÊÓƵ®) where Lightman J stated that

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