costs award
📖 What is costs award? Meaning and definition
In UK tenancy disputes, particularly within the First-tier Tribunal (Property Chamber), a costs award means that the Tribunal has decided that one party must contribute towards the legal costs incurred by the other party. This often happens when one side has been successful in their application, or if the Tribunal finds that the other party's conduct was unreasonable, vexatious, or involved a deliberate failure to follow directions. The aim is to ensure fairness, as legal proceedings can be expensive, especially if solicitors or counsel are instructed.
The process typically involves the successful party making an application for costs, often under Rule 13 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013. This application will usually include a 'bill of costs' detailing the expenses incurred, such as solicitor's fees, counsel's fees, and other disbursements. The Tribunal then considers this application, and the opposing party has the opportunity to challenge it.
The Tribunal will then determine the amount of the costs award. This might be the full amount claimed, or a reduced sum, depending on the circumstances of the case and the Tribunal's assessment of the reasonableness of the costs. For self-represented litigants, understanding that they might be liable for the other side's costs, or indeed be able to claim their own, is crucial, although the rules around claiming costs for time spent by a litigant in person can be complex.
📋 Requirements
- An application for costs must be made, often under Rule 13 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013.
- The Tribunal must determine that a costs award is appropriate, often due to the outcome of the case or the conduct of a party.
- A bill of costs detailing the expenses incurred must be submitted.
- The opposing party must have an opportunity to oppose the application.
📝 Procedure
- A party applies for costs following a determination by the Tribunal.
- The application includes a detailed bill of costs, itemising expenses like legal fees and hourly rates.
- The opposing party is given the chance to challenge the costs application.
- The Tribunal reviews the submissions and determines whether to make a costs award and for what amount.
💡 Examples
- A group of leaseholders successfully applied for the terms of acquiring a freehold, leading to a costs award against the respondent company.
- In a service charge dispute, the Tribunal made a costs award of £25,000 plus VAT against the applicants after a hearing.
- Costs were awarded against a solicitor whose behaviour was deemed vexatious, including ignoring directions and failing to appear at a hearing without excuse.
- A landlord who deliberately and repeatedly ignored Tribunal directions might face a costs award for the tenant's legal expenses.
📚 Legal basis
- The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013
❓ Frequently asked questions
What does Rule 13 mean for a costs award?
Rule 13 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 is the specific rule under which parties in property disputes can apply for costs. It allows the Tribunal to make an order for costs if it considers it appropriate, often in cases of unreasonable behaviour.
Can I get a costs award if I represent myself?
The case excerpts primarily show costs awards involving parties who instructed counsel or solicitors. While it's possible for self-represented litigants to claim some expenses, the rules for claiming costs for your own time are different and often more limited than for professional legal fees.
How is the amount of a costs award decided?
The Tribunal considers the bill of costs submitted by the applicant, which details expenses like hourly rates for legal professionals and other charges. The Tribunal will then determine a reasonable amount, which may be the full sum claimed or a reduced figure, based on the circumstances of the case.
What kind of behaviour can lead to a costs award against me?
Behaviour such as being vexatious, deliberately and repeatedly ignoring Tribunal directions, or failing to appear at a hearing without apology or excuse can lead to a costs award against you, as seen in the examples.
Is a costs award always for the full amount claimed?
No, a costs award is not always for the full amount claimed. The Tribunal will assess the submitted bill of costs and determine a sum it deems appropriate, which might be less than the original claim, as demonstrated by a £25,000 award from a £128,754 claim.