Question about costs.

[charitynjw]

Example.

A claim is issued that in all probability will end up in Small Claims & under the usual 'no costs' rule.
However, before it is allocated, the cr@p defence is struck out as having no prospect.
Is the Defendant exposed to the other party's costs?

(That's just one illustration. I'm just wondering how exposed people are to costs at 'pre-allocation to SCT'.
(Apart from abuse of process).

[pt2537]

Re: Question about costs.

Example.

A claim is issued that in all probability will end up in Small Claims & under the usual 'no costs' rule.
However, before it is allocated, the cr@p defence is struck out as having no prospect.
Is the Defendant exposed to the other party's costs?

(That's just one illustration. I'm just wondering how exposed people are to costs at 'pre-allocation to SCT'.
(Apart from abuse of process).

A claim that is unallocated is not subject to CPR 27 and the cost rules, so in theory a cost order could be made. But it doesnt end there, even if allocated to the SCT, the creditor could rely on a clause in the contract giving a right to costs, thus ousting the SCT costs restrictions ( see Shaw v Nine Regions)

Lastly, a strike out could suggest unreasonable conduct by the Defendant, thus CPR 27.14(2)(g) could be applied

In short, costs are never out of the question if your in a live claim.

[charitynjw]

Re: Question about costs.

A claim that is unallocated is not subject to CPR 27 and the cost rules, so in theory a cost order could be made. But it doesnt end there, even if allocated to the SCT, the creditor could rely on a clause in the contract giving a right to costs, thus ousting the SCT costs restrictions ( see Shaw v Nine Regions)

Lastly, a strike out could suggest unreasonable conduct by the Defendant, thus CPR 27.14(2)(g) could be applied

In short, costs are never out of the question if your in a live claim.

Thanks, pt2537

So if a Claimant discontinues before allocation to SCT, they are potentially liable? (CPR 46.11 & 13)

[pt2537]

Re: Question about costs.

Thanks, pt2537

So if a Claimant discontinues before allocation to SCT, they are potentially liable? (CPR 46.11 & 13)

It depends on the facts of the case, but possibly, but also possibly not if the Court determines theres no unreasonable conduct and the case would be small claims.

Sadly this type of question is largely unanswerable as there are so many permutations