Court of Appeal Costs and Assessment
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What is the Court of Appeal?
The Court of Appeal deals with complex cases arising from appeals arising from both the Upper Tribunals and Civil courts. Should a decision of the First Tier Tribunal not be agreed by either party, this can be appealed to the Upper Tribunal for reconsideration of the case.
Further disagreement of the dispute can result in an appeal to the Court of Appeal being made following permission to appeal being granted (this will requirement payment of further Courts fees to proceed). The only more senior Court within England and Wales is the Supreme Court.
What is the Court of Appeal?
The Court of Appeal deals with complex cases arising from appeals arising from both the Upper Tribunals and Civil courts. Should a decision of the First Tier Tribunal not be agreed by either party, this can be appealed to the Upper Tribunal for reconsideration of the case.
Further disagreement of the dispute can result in an appeal to the Court of Appeal being made following permission to appeal being granted (this will requirement payment of further Courts fees to proceed). The only more senior Court within England and Wales is the Supreme Court.
Court of Appeal Costs
The general rule in relation to Court of Appeal costs is that the losing party pays the costs of the winning party.
CPR 44.2(2) outlines the general rule:
44.2(2)
When the court decides to issue a costs order –
(a) the general rule is that the unsuccessful party will be required to pay the costs of the successful party…
However, the court retains its usual discretion over costs.
Whilst costs orders can be set by the First-Tier Tribunal, Upper Tribunal, High Court and other civil Courts, the Court of Appeal has the power to make alternative orders for costs and even have the orders of the lower Courts set aside.
The relevant rules are CPR 52.20(1) and (2), which grant the Court of Appeal authority to address both the costs incurred in the lower court and those associated with the appeal:
52.20
Regarding an appeal, the appeal court possesses all the powers of the lower court.
The appeal court has the authority to:
(a) affirm, set aside, or modify any order or judgment issued by the lower court;
(b) refer any claim or issue back to the lower court for determination;
(c) order a new trial or hearing; (d) issue orders for the payment of interest; (e) make a costs order.
How are Court of Appeal Costs Assessed?
The Court of Appeal has the power to summarily assess the costs arising from the appeal. This is likely to be the case where the appeal is short and on a particular point of law.
In the case of Lownds, Lord Woolf CJ, set out the correct approach for the Court to take in relation to summary assessment. At paragraph 31, he stated:
“In other words, what is required is a two-stage approach. There has to be a global approach and an item by item approach. The global approach will indicate whether the total sum claimed is or appears to be disproportionate having particular regard to the considerations which CPR r 44.5(3) states are relevant. If the costs as a whole are not disproportionate according to that test, then all that is normally required is that each item should have been reasonably incurred and the cost for that item should be reasonable. If on the other hand, the costs as a whole appear disproportionate then the Court will want to be satisfied that the work in relation to each item was necessary and, if necessary, that the cost of the item is reasonable.”
If the costs appear disproportionate, then the Court will assess the costs item by item to ensure they are necessary and reasonable.
To aid the court in the summary assessment of costs, it is beneficial for the applicant to prepare a concise explanatory note detailing the breakdown of the various cost components, especially if they are not clearly outlined in the pro forma schedule.
Guidance on the summary assessment of appeal costs is provided in the General Principles and Guidance on Costs: The Summary Assessment of Costs, found in paragraphs 65-70 of The White Book at CPR 48x.
Alternatively, Court of Appeal costs can go to detailed assessment if they are not agreed.
In cases where the costs ordered by a lower Court are set aside by the Court of Appeal, the costs paid pursuant to the order made by the lower Court will need to be repaid. The Court of Appeal has the power to order interest on those costs.
How can ARC Costs Help?
ARC Costs are a team of specialist Costs Lawyers and Costs Draftsmen. We can assist in preparing a Bill of Costs for costs incurred following any costs orders made by the Courts. We can assist in disputing Bills of Costs which have been served by the receiving party following a Costs Order, and preparing Points of Dispute to reduce the amount payable.
We can assist in representing either receiving or paying parties at detailed assessment and through the full costs recovery process. Should you require any further information or our assistance, please contact us on 01204 397302, via email at info@arccosts.co.uk, or via the live chat facility below.
The general rule in relation to Court of Appeal costs is that the losing party pays the costs of the winning party.
CPR 44.2(2) outlines the general rule:
44.2(2)
When the court decides to issue a costs order –
(a) the general rule is that the unsuccessful party will be required to pay the costs of the successful party…
However, the court retains its usual discretion over costs.
Whilst costs orders can be set by the First-Tier Tribunal, Upper Tribunal, High Court and other civil Courts, the Court of Appeal has the power to make alternative orders for costs and even have the orders of the lower Courts set aside.
The relevant rules are CPR 52.20(1) and (2), which grant the Court of Appeal authority to address both the costs incurred in the lower court and those associated with the appeal:
52.20
Regarding an appeal, the appeal court possesses all the powers of the lower court.
The appeal court has the authority to:
(a) affirm, set aside, or modify any order or judgment issued by the lower court;
(b) refer any claim or issue back to the lower court for determination;
(c) order a new trial or hearing; (d) issue orders for the payment of interest; (e) make a costs order.
How are Court of Appeal Costs Assessed?
The Court of Appeal has the power to summarily assess the costs arising from the appeal. This is likely to be the case where the appeal is short and on a particular point of law.
In the case of Lownds, Lord Woolf CJ, set out the correct approach for the Court to take in relation to summary assessment. At paragraph 31, he stated:
“In other words, what is required is a two-stage approach. There has to be a global approach and an item by item approach. The global approach will indicate whether the total sum claimed is or appears to be disproportionate having particular regard to the considerations which CPR r 44.5(3) states are relevant. If the costs as a whole are not disproportionate according to that test, then all that is normally required is that each item should have been reasonably incurred and the cost for that item should be reasonable. If on the other hand, the costs as a whole appear disproportionate then the Court will want to be satisfied that the work in relation to each item was necessary and, if necessary, that the cost of the item is reasonable.”
If the costs appear disproportionate, then the Court will assess the costs item by item to ensure they are necessary and reasonable.
To aid the court in the summary assessment of costs, it is beneficial for the applicant to prepare a concise explanatory note detailing the breakdown of the various cost components, especially if they are not clearly outlined in the pro forma schedule.
Guidance on the summary assessment of appeal costs is provided in the General Principles and Guidance on Costs: The Summary Assessment of Costs, found in paragraphs 65-70 of The White Book at CPR 48x.
Alternatively, Court of Appeal costs can go to detailed assessment if they are not agreed.
In cases where the costs ordered by a lower Court are set aside by the Court of Appeal, the costs paid pursuant to the order made by the lower Court will need to be repaid. The Court of Appeal has the power to order interest on those costs.
How can ARC Costs Help?
ARC Costs are a team of specialist Costs Lawyers and Costs Draftsmen. We can assist in preparing a Bill of Costs for costs incurred following any costs orders made by the Courts. We can assist in disputing Bills of Costs which have been served by the receiving party following a Costs Order, and preparing Points of Dispute to reduce the amount payable.
We can assist in representing either receiving or paying parties at detailed assessment and through the full costs recovery process. Should you require any further information or our assistance, please contact us on 01204 397302, via email at info@arccosts.co.uk, or via the live chat facility below.
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