costs order
📖 What is costs order? Meaning and definition
In UK legal proceedings, a costs order is a significant part of the final judgment, determining who bears the financial burden of the litigation. While in some courts, like the County Court or High Court, the general rule is that 'costs follow the event' (meaning the losing party pays the winner's costs), tribunals like the Employment Tribunal operate under different rules, often requiring specific grounds for such an order to be made.
For instance, in the Employment Tribunal, a costs order can be made if a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably in bringing or conducting the proceedings. It can also be made if a party has breached any order, rule, or practice direction. The tribunal has discretion to make such an order on its own initiative or upon application by a party.
The process typically involves three stages: first, determining if the grounds for awarding costs are met; second, deciding whether it is appropriate to exercise the discretion to award costs; and third, calculating the amount of costs to be awarded. This ensures that costs orders are not automatic but are carefully considered based on the conduct of the parties and the circumstances of the case.
For self-represented litigants, understanding costs orders is crucial as they can significantly impact the financial outcome of a case. Even if a claim is successful in part, a costs order might be made against a party for unreasonable conduct during the proceedings, as seen in cases where a claimant's misconduct led to a partial costs order.
📋 Requirements
- A party (or their representative) has acted vexatiously, abusively, disruptively or otherwise unreasonably in bringing or conducting the proceedings.
- A party has been in breach of any order, rule or practice direction.
- The Tribunal considers making a costs order on its own initiative or on the application of a party.
📝 Procedure
- A party applies for a costs order against another party.
- The Tribunal determines whether one or more grounds for awarding costs are engaged (i.e., if the threshold for awarding costs has been met).
- The Tribunal decides whether it is appropriate to exercise its discretion to award costs.
- The Tribunal determines the amount of costs to be awarded.
💡 Examples
- After a disability discrimination claim was dismissed, but a holiday pay claim succeeded, the respondent applied for and was awarded £7,000 towards their costs.
- An Employment Tribunal denied a strike-out but awarded costs against a party due to their unreasonable and vexatious conduct during the proceedings.
- A claimant's misconduct, including rude and aggressive communications, led to a partial costs order being made against them by the tribunal.
- A costs order was considered against a party who made allegations of fraud and modified evidence, demonstrating vexatious conduct.
📚 Legal basis
- Employment Tribunal Procedure Rules Regulations 2024
❓ Frequently asked questions
What does 'costs follow the event' mean?
This principle, common in County and High Courts, means that the losing party in a legal case is typically ordered to pay the winning party's legal costs. However, this is not always the case in tribunals like the Employment Tribunal, where specific rules apply.
Can a costs order be made against me even if I win part of my case?
Yes, a costs order can be made against you even if you succeed on some aspects of your claim. This can happen if the tribunal finds that you acted unreasonably, vexatiously, or disruptively in bringing or conducting the proceedings, or if you breached a court order.
How much can a costs order be for?
The amount of a costs order is determined by the tribunal after it decides that costs should be awarded. It can be for a partial amount or a significant sum, depending on the circumstances of the case and the extent of the unreasonable conduct.
Do I have to apply for a costs order, or can the tribunal make one on its own?
The tribunal can make a costs order on its own initiative, meaning without a specific application from a party. However, a party can also apply for a costs order against another party.
What if I can't afford to pay a costs order?
The tribunal will consider all relevant circumstances when making a costs order, including a party's ability to pay. However, the primary focus is on the conduct that led to the order. If you are concerned about your ability to pay, you should raise this with the tribunal.
What kind of conduct can lead to a costs order?
Conduct that can lead to a costs order includes acting vexatiously (with the intention to annoy or harass), abusively, disruptively, or otherwise unreasonably. This also covers breaching any order, rule, or practice direction, such as making false allegations or submitting misleading evidence.