When Power Goes Wrong · Who Pays? · Part 20

If you win, does the Government pay all your legal costs?

Usually not automatically. Court costs are discretionary and normally assessed under scale rules rather than simply reimbursing every dollar spent. Increased or indemnity costs require a separate basis.

“Costs follow the event” is a useful shorthand, but it does not mean the successful party automatically gets all solicitor-client fees back.

Part 14 of the High Court Rules makes costs discretionary. The normal scale method applies daily recovery rates to time allowances for procedural steps. The rules contemplate a normal recovery rate rather than exact reimbursement of actual fees.

Winning and being made financially whole are different.A claimant can win substantive relief and still bear a significant portion of actual legal fees. Increased or indemnity costs are available only where the rules or another legal basis justify them.

Standard costsScale-based contribution toward reasonable litigation costs.

Increased costsHigher award where the rules justify it, including unnecessary expense or procedural conduct.

Indemnity costsActual reasonable costs in specified exceptional circumstances.

Settlement effectWritten “without prejudice except as to costs” offers can materially alter later cost consequences.

A damages figure should never be assumed to include legal fees unless the judgment or settlement actually deals with costs.

Court rulesHigh Court Rules 2016, Part 14.

← Series index · Previous · Next →