Costs (English law)

In English civil litigation, costs are the lawyers' fees and disbursements of the parties.

Each party is initially liable to pay his own solicitors on their agreed basis his "solicitor and own client costs", which will include disbursements such as barrister's fees; in case of dispute, the court has jurisdiction to assess and determine the proper amount. In legal aid cases, a similar assessment will determine the costs which the solicitors will be paid from the Legal Aid Fund.

In most courts and tribunals, generally after a final judgment has been given, and possibly after any interim application, the judge has the power to order any party (and in exceptional cases even a third party, or any of the lawyers personally) to pay some or all of other parties' costs. The law of costs defines how such allocation is to take place. Even when a successful party obtains an order for costs against an opponent, it is usual that he may nevertheless still have to pay his solicitors a balance between the costs recoverable from the opponent and the total chargeable by his solicitor; and if the loser is unable to pay, then the order for costs may be worthless, and the successful party will remain fully liable to his own solicitors.

The law of costs in England and Wales is typical of common law jurisdictions, save that of the United States.

In the small fraction of cases that do not settle and instead proceed to a judgment, generally "costs follow the event" so that the successful party is entitled to seek an order that the unsuccessful party pay his or her costs. Should a case settle, then the parties can seek to agree costs, with the general rule that the losing party pays costs.

The order that a judge gives as to costs determines who will be the paying and who the receiving party. The amount of costs remains to be determined by assessment if not agreed. Common costs orders, other than on the Small Claims Track, include the following.

As a general rule, after judgment has been handed down, the Court "will" order one party to make an advance payment towards the other side's costs. This will be done even before the costs claim has been finalised.

The amount that will be ordered is based upon the parties' disclosed costs estimates, and will take into account the percentage of costs that have been ordered to be paid; any order for Indemnity Basis costs, if relevant, and any costs that are due to the paying party.

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