costs determination
📖 What is costs determination? Meaning and definition
A costs determination is a decision made by a tribunal, specifically the First-tier Tribunal (Property Chamber) in the context of residential property, regarding the amount of legal costs that one party is required to pay to another. This process is typically initiated when one party applies to the Tribunal to have these costs assessed and decided upon. The Tribunal's role is to review the claim for costs and make a binding decision on the sum to be paid.
This type of application is often seen in cases related to Right to Manage (RTM) claims under the Commonhold and Leasehold Reform Act 2002. For instance, a landlord might seek a determination of their costs from an RTM company, or an RTM company might seek a determination of costs from another party. The Tribunal will consider whether the claimed costs are reasonable before making its decision.
The determination process can involve the Tribunal reviewing documents submitted by both parties. In some instances, the decision can be made remotely based on the submitted papers, especially if no party requests a face-to-face hearing. The outcome is a formal decision stating the exact amount of costs to be paid by the respondent to the applicant, as determined by the Tribunal.
📋 Requirements
- An application must be made to the First-tier Tribunal (Property Chamber) for a determination of costs.
- The application must specify the legal basis for seeking costs, such as under s.88(4) of the Commonhold and Leasehold Reform Act 2002.
- The costs claimed must be in connection with a specific legal action, such as a Right to Manage claim.
- The party opposing the application may argue that the costs have already been determined or that the claimed costs are not reasonable.
📝 Procedure
- An applicant submits an application to the Tribunal seeking a determination of their costs.
- The respondent has the opportunity to oppose the application, potentially on grounds that costs were previously determined or are unreasonable.
- The Tribunal reviews the submitted documents, which may include an electronic bundle of papers.
- The Tribunal makes a decision, which can be based on papers without a face-to-face hearing if not requested.
- The Tribunal issues a formal decision stating the determined sum of costs to be paid by the respondent to the applicant.
💡 Examples
- A freehold owner of a property applies to the Tribunal to determine the costs they incurred in relation to a Right to Manage claim served by an RTM company.
- An RTM company seeks a determination from the Tribunal for the costs they believe are owed to them by another company under the Commonhold and Leasehold Reform Act 2002.
- A landlord applies for reimbursement of their application fee in addition to a determination of their legal costs related to an RTM claim.
- The Tribunal determines that a respondent must pay a specific sum, for example, £887.40, to the applicant as costs pursuant to section 88 of the Commonhold and Leasehold Reform Act 2002.
📚 Legal basis
- Commonhold and Leasehold Reform Act 2002
❓ Frequently asked questions
What kind of costs can be determined by the Tribunal?
The Tribunal can determine legal costs incurred in specific property-related matters, such as those arising from Right to Manage (RTM) claims under the Commonhold and Leasehold Reform Act 2002.
Who can apply for a costs determination?
Either party involved in a relevant dispute, such as a landlord or a Right to Manage company, can apply to the First-tier Tribunal (Property Chamber) to have their costs determined.
What does the Tribunal consider when determining costs?
The Tribunal considers whether the claimed costs are reasonable and if they are properly connected to the legal action for which they are sought, often referring to specific sections of relevant acts like section 88 of the Commonhold and Leasehold Reform Act 2002.
Can a costs determination be made without a hearing?
Yes, the Tribunal can make a decision based on submitted documents if no party requests a face-to-face hearing and all issues can be determined on paper.
What if I disagree with the costs claimed by the other party?
You can oppose the application for costs determination by arguing that the costs claimed are not reasonable or that they have already been determined by a previous decision.
Is there a fee for applying for a costs determination?
Yes, there can be an application fee, and the applicant may seek reimbursement of this fee as part of their costs determination application.