costs orders
📖 What is costs orders? Meaning and definition
In UK tenancy law, a costs order means that a judge or tribunal has decided that one party, such as a tenant or landlord, must pay the legal costs incurred by the other party. These orders are not automatic; the tribunal has a discretion whether to make one, even if the grounds for doing so are met. The party applying for costs has the burden of proving that such an order is justified.
Costs orders are typically 'fact specific', meaning the decision depends heavily on the unique details of each case. Tribunals aim to deal with these applications as quickly as possible, generally avoiding 'issue based costs orders' which might complicate matters. While costs orders can be made, particularly in cases where one party has shown a significant lack of engagement or unreasonable behaviour, they are often considered the exception rather than the rule in some tribunal settings.
For self-represented litigants, understanding costs orders is crucial because they can significantly impact the financial outcome of a case. For example, if a tenant fails to attend a hearing or provide evidence, leading to their case being struck out, they may be ordered to pay the landlord's costs. The amount can be summarily assessed by the tribunal, meaning the tribunal determines the sum directly without a detailed assessment process.
📋 Requirements
- A ground for making a costs order must be established by the applying party.
- The tribunal must exercise its discretion to decide whether to make the order.
- The conduct of the parties, such as lack of engagement or unreasonable behaviour, is taken into account.
- The order is fact-specific to the circumstances of the case.
📝 Procedure
- A party applies for costs.
- The tribunal considers whether a ground for costs is made out.
- The tribunal exercises its discretion on whether to make an order.
- The tribunal assesses the amount of costs to be paid, often summarily.
💡 Examples
- A tenant was ordered to pay a landlord's costs of £4,560 because the tenant did not attend the hearing or file any evidence, despite receiving directions.
- A tenant had their application regarding service charges struck out after failing to attend a hearing and was subsequently ordered to pay the landlord's costs of £6,500.
- Even if a discrimination claim is challenging for the claimant, this does not provide immunity from costs orders if their conduct warrants one.
- A tribunal might deny a strike-out but still award costs against a party for vexatious conduct during the proceedings.
📚 Legal basis
- Commonhold and Leasehold Reform Act 2002
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'summarily assessed' mean for costs orders?
When costs are 'summarily assessed', it means the court or tribunal decides the amount to be paid directly, usually at the end of a hearing, without a more detailed and lengthy assessment process.
Are costs orders common in tenancy disputes?
While costs orders can be made in tenancy disputes, particularly in cases of unreasonable behaviour or lack of engagement, some tribunals consider them to be the exception rather than the rule.
Can I be ordered to pay costs if I represent myself?
Yes, being self-represented does not provide immunity from costs orders. If your conduct in the case is deemed unreasonable or vexatious, or if you fail to participate, you could still be ordered to pay the other party's costs.
What if I can't afford to pay a costs order?
The tribunal will consider all relevant factors when deciding on costs. If you are concerned about your ability to pay, you should raise this with the tribunal. It is advisable to seek legal advice from a qualified solicitor if you are facing a costs order you cannot afford.
Does winning my case mean I will automatically get my costs paid?
Not necessarily. The tribunal has discretion whether to make a costs order, even if you win. You would need to apply for costs and demonstrate that a ground for making the order is established, and the tribunal must agree to exercise its discretion in your favour.