costs claim
📖 What is costs claim? Meaning and definition
In UK tenancy law, particularly within the First-tier Tribunal (Residential Property), a costs claim refers to an application by one party, such as a freeholder, tenant, or landlord, to recover their legal costs from the opposing party. These claims are typically made under specific procedural rules, such as Rule 13 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, which outlines the circumstances under which the Tribunal may order one party to pay the costs of another.
The Tribunal has the discretion to decide whether to award costs. As seen in the provided cases, a costs claim might be rejected, meaning the party who applied for costs will not have their expenses paid by the other side. This can happen even if the applicant was successful in the main dispute, as the award of costs is a separate decision based on specific criteria, such as unreasonable behaviour by a party.
Costs claims can also involve contractual costs, as highlighted in one case where the Tribunal determined that contractual costs were not payable under paragraph 5a of Schedule 11 Commonhold and Leasehold Reform Act 2002. This indicates that even if a contract (like a lease) might suggest one party is liable for costs, the Tribunal can override this based on statutory provisions.
For self-represented litigants, understanding that a costs claim is not automatically granted is crucial. The Tribunal will consider the application based on the relevant rules and the specific facts of the case, and a successful outcome in the primary dispute does not guarantee a successful costs claim.
📋 Requirements
- An application for costs must be made.
- The application must be considered under relevant procedural rules, such as Rule 13(1)(b) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013.
- The Tribunal must determine whether to make an order for costs.
- Consideration may be given to contractual costs, subject to relevant legislation like the Commonhold and Leasehold Reform Act 2002.
📝 Procedure
- A party submits an application for costs to the Tribunal.
- The Tribunal reviews the application, often referring to specific rules like Rule 13.
- The Tribunal considers the circumstances, including any previous decisions in the main case.
- The Tribunal makes a decision on whether to award costs and against whom.
💡 Examples
- A freeholder applied for costs against tenants under Rule 13(1)(b) and paragraph 5a of Schedule 11 Commonhold and Leasehold Reform Act 2002, but the Tribunal decided not to award them.
- A respondent landlord sought costs from a tenant under rule 13(1)(b)(ii) following a previous tribunal decision, but the application was dismissed.
- Tenants made an application for a Rent Repayment Order and also applied for costs under rule 13, but their costs application was dismissed by the Tribunal.
- The Tribunal considered a costs claim in a tenancy dispute where the determination was made on paper without a face-to-face hearing.
📚 Legal basis
- Tribunal Procedure (First Tier Tribunal) (Property Chamber) Rules 2013
- Commonhold and Leasehold Reform Act 2002
- Housing and Planning Act 2016
❓ Frequently asked questions
What does it mean if my costs claim is dismissed?
If your costs claim is dismissed, it means the Tribunal has decided not to order the other party to pay your legal expenses, and you will be responsible for your own costs.
Can I claim costs even if I win my main case?
Yes, you can apply for costs even if you win your main case, but the award of costs is a separate decision made by the Tribunal based on specific rules and circumstances, not an automatic entitlement.
What is Rule 13 in relation to costs claims?
Rule 13 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 is a key rule that tribunals use to decide whether to award costs, often considering if a party has acted unreasonably.
Are contractual costs always payable if my lease says so?
Not necessarily. As shown in one case, the Tribunal can determine that contractual costs are not payable, especially if there are specific statutory provisions, like those in the Commonhold and Leasehold Reform Act 2002, that override contractual terms.
Does a costs claim mean I will definitely get my money back?
No, making a costs claim does not guarantee you will get your money back. The Tribunal has the discretion to grant or reject the application based on the evidence and relevant legal rules.