wasted costs
📖 What is wasted costs? Meaning and definition
Wasted costs refer to legal expenses that have been spent without good reason, often because of mistakes or unreasonable behaviour by one of the parties involved in a legal dispute, or by their solicitors or expert witnesses. The aim of a wasted costs order is to ensure that the party responsible for the unnecessary costs bears them, rather than the innocent party. For example, a local authority was ordered to pay £750 in wasted costs because they issued an improvement notice and demand for payment to the wrong entity, failing to correct the error when it was pointed out.
These costs can include fees for solicitors and counsel, as well as other associated expenses that would not have been incurred if the proceedings had been conducted properly. The tribunal or court will assess which costs were genuinely wasted. In one case, a tenant was awarded £16,000 in wasted costs against a landlord whose unreasonable conduct meant that further legal steps, including two hearings and counsel preparation, became necessary when they should have engaged earlier.
An application for wasted costs can be made against various parties, including solicitors or even expert witnesses, although such applications are not always successful. For instance, an application for wasted costs against an expert witness was dismissed. The court or tribunal will consider the circumstances and determine if the conduct was unreasonable and directly led to the unnecessary expenditure. The process involves making representations and the tribunal then makes a determination, often specifying a timeframe for payment.
📋 Requirements
- Unreasonable conduct or error by a party or their representative.
- Costs incurred that would not have been otherwise necessary.
- A direct link between the conduct/error and the wasted expenditure.
- The tribunal or court must be satisfied that the costs are indeed wasted costs within the context of the application.
📝 Procedure
- A party makes an application for a wasted costs order.
- Representations are made by both parties regarding the application.
- The tribunal or court considers the evidence and arguments.
- A determination is made on whether to grant the wasted costs order and the amount.
💡 Examples
- A local authority was ordered to pay £750 in wasted costs because they incorrectly addressed an improvement notice and demand for payment, and failed to withdraw it when the error was highlighted.
- A tenant was awarded £16,000 in wasted costs from a landlord whose unreasonable conduct meant that the tenant had to incur significant legal fees for hearings and counsel preparation that could have been avoided.
- An application for wasted costs against an expert witness was dismissed, indicating that not all applications for such orders are successful and specific criteria must be met.
📚 Legal basis
- Tribunals, Courts and Enforcement Act 2007
❓ Frequently asked questions
What kind of conduct leads to a wasted costs order?
Wasted costs orders are typically made when a party or their legal representative acts unreasonably or makes an error that causes unnecessary legal expenses. This could include failing to engage in proceedings when they should have, or issuing notices to the wrong party.
Who can be ordered to pay wasted costs?
A wasted costs order can be made against a party to the case, their solicitors, or even an expert witness, if their conduct or error led to the unnecessary costs.
How much can be awarded for wasted costs?
The amount awarded depends on the actual costs deemed to have been wasted. Awards can vary significantly, from hundreds of pounds, such as £750 in one case, to tens of thousands, like the £16,000 awarded in another instance.
Is it easy to get a wasted costs order?
While possible, obtaining a wasted costs order is not guaranteed. Applications can be dismissed if the tribunal or court is not satisfied that the specific criteria for unreasonable conduct and wasted expenditure are met, as seen in a case where an application against an expert witness was refused.
Do wasted costs cover all my legal expenses?
No, wasted costs only cover the specific legal expenses that are deemed to have been 'wasted' due to the unreasonable conduct or error. The tribunal will assess which costs fall into this category, distinguishing them from necessary litigation costs.
What if I believe my landlord's actions have caused me wasted costs?
If you believe your landlord's unreasonable conduct has caused you to incur unnecessary legal costs, you may be able to apply for a wasted costs order. You would need to demonstrate the unreasonable conduct and the specific costs that were wasted as a direct result. You may wish to consult a qualified solicitor for advice on your specific situation.