Note: This file does not form part of the LCD or CS sites. The files on those sites are the only official versions of the CPRs and related material. Please also note that the cross-references are not claimed to be comprehensive.

Click here to reload this page into top frame


SECTION 25  
25.1   The Access to Justice Act 1999 and the Regulations
  
(a)   Any costs ordered to be paid by a LSC funded client must not exceed the amount which is a reasonable one for him to pay having regard to all the circumstances including the financial resources of all the parties to the proceedings and their conduct in connection with the dispute to which the proceedings relate (Access to Justice Act 1999, Section 11).
(b)   The Community Legal Service ( Costs) Regulations 2000 as amended ("the Costs Regulations") and the Community Legal Service ( Costs Protection) Regulations 2000 as amended ("the Costs Protection Regulations") are Regulations made under the Access to Justice Act 1999 and provide a code governing orders for costs against assisted persons/ LSC funded clients and against the LSC.
(c)   The ordinary rules governing the assessment of costs (Parts 44 to 48 of the CPR) do not apply to the assessment of such costs. The procedure to be followed in such cases is set out in Sections 21 -- 23 of the Costs Practice Directionpdp-43.
25.2   Orders Which the Court Awarding Costs May Make
  
(a)   If the court decides to make an order for costs against a LSC funded client it may either make an order that the amount of the costs payable by the LSC funded client is to be determined by a Costs Judge or District Judge or make an order which specifies the amount which the LSC funded client is to pay.
(b)   If the court decides to make an order that the amount payable by the LSC funded client is to be determined by a Costs Judge or District Judge it may also state the amount which that person would, had costs protection not applied, have been ordered to pay ie the full costs which would be determined by summary assessment. Alternatively the court may make findings of facts eg about the conduct of all the parties which must be taken into account by the Costs Judge or District Judge in the subsequent determination proceedings.
(c)   The court will not make an order which specifies the amount which the LSC funded client is to pay unless it considers that it has sufficient information before it to decide what amount is reasonable and either the order also states the amount of the full costs (ie the amount which that person would, had costs protection not applied, have been ordered to pay) or the court is satisfied that the full costs would exceed the amount which it has specified that the LSC funded client must pay.
(d)   If the LSC funded client does not have costs protection in respect of all of the costs (eg the certificate was not in force during the whole of the proceedings) the order must also identify the sum payable in respect of which the LSC funded client had costs protection and the sum payable in respect of which he did not have costs protection. (See Section 22 of the Costs Practice Directionpdp-43.)
(e)   A specimen order for costs against a claimant who is a LSC funded client is set out in the Appendix, below, para A-6.
25.3   Costs Against the LSC
  
(a)   If an application for an order for costs against the LSC is made the criteria set out in Regulation 5 of the Costs Protection Regulations will apply. Before the LSC can be ordered to pay the whole or any part of the costs incurred by a non-funded party all of several conditions must be satisfied:
  
(i)   the costs ordered to be paid by the LSC funded client must be less than the full costs (ie the amount which that person would, had costs protection not applied, have been ordered to pay);
(ii)   the proceedings must have been finally decided in favour of the non-funded party;
(iii)   the non funded party must provide written notice of intention to seek an order against the LSC within 3 months of the making of the order for costs against the LSC funded client;
(iv)   the court must be satisfied that it is just and equitable in the circumstances that provision for the costs should be made out of public funds; and,
(v)   where the costs are incurred in a court of first instance, the proceedings must have been instituted by the LSC funded client and, the court must be satisfied that the non- funded party will suffer severe financial hardship unless the order is made.
(b)   Where the application for funded services was made on or after 3 December 2001 the three months time limit referred to in (iii) above may be extended if there is a good reason for the delay; and in (v) above only a non funded party who is an individual may apply but the court will not have to be satisfied that the financial hardship he or she will suffer will be severe.
25.4   Orders Which A Costs Judge or District Judge May Subsequently Make
  
(a)   An order for costs to which Section 11(1) of the Access to Justice Act 1999 applies may specify the amount of full costs and may specify the amount payable by the LSC funded client. Where appropriate an application may be made to the District Judge or Costs Judge of the relevant court to determine:
  
(i)   the amount of full costs;
(ii)   the amount payable by the LSC funded client;
(iii)   the amount payable by the LSC itself.
(b)   The procedure for determination is set out in Section 23 of the Costs Practice Directionpdp-43 which is summarised below.
25.5   Form of Application
   Applications for such orders must be made in the appropriate court office on an application in Form N244 accompanied by:
(i)   the receiving party's bill of costs (unless the full costs have already been determined);
(ii)   the receiving party's statement of resources (defined below); and
(iii)   if the receiving party intends to seek costs against the LSC, written notice to that effect.
25.6   The Response by the LSC Funded Client
  
(a)   Within 21 days of being served with the application, the LSC funded client must respond by filing a statement of resources (defined below) and serving a copy of it on the receiving party and, where relevant, on the Regional Director. The LSC funded client may also, within the same time limit, file and serve written points disputing the bill of costs.
(b)   The 21 day time limit mentioned above may be extended by agreement between the parties or by order of the court.
25.7   Effect of Non Compliance by the LSC Funded Client
   If the LSC funded client fails to file a statement of resources without good reason, the court will determine his liability (and the amount of full costs if relevant) and need not hold an oral hearing for any such determination.
25.8   Further Procedure Where a Statement of Resources by the LSC Funded Client is Filed or is not Required
  
(a)   When the LSC funded client files a statement of resources the court will fix a hearing date and give the relevant parties at least 14 days notice. If the application is made only against the LSC the court may fix a hearing date at the time of issue of the application.
(b)   Applications which proceed to a hearing to determine the liability of the LSC funded client will, in the first instance, be listed as a hearing to be held in private. At the start of the hearing, or during it, any party may request the court to rule that, thereafter, the hearing should be conducted in public.
25.9   Response by the Regional Director of the LSC
   The Regional Director of the LSC may appear at any hearing at which a costs order may be made against the LSC or may file a written statement as described in para 23.10 of the Costs Practice Directionpdp-43.
25.10   Costs of Application
   When dealing with the application the court has a discretion as to whether the costs of the application are payable by one party to another, the amount of those costs, and (if relevant) when they are to be paid.
25.11   Statements of Resources
  
(a)   A "statement of resources" should set out details of the financial resources and expectations of the maker of the statement and of his "partner" (a person with whom he or she lives as a couple). The resources of a partner are not treated as the LSC client's resources if the partner has a contrary interest in the proceedings.
(b)   A full definition of "statement of resources" is given in para 22.1 of the Costs Practice Directionpdp-43. In order to comply with that paragraph the party making a statement of resources may be able to adapt the text of Form N9A a copy of which is obtainable from the court office or from a Citizens Advice Bureau.
(c)   The Costs Regulations provide for the filing of statements of resources not only by the LSC funded client but also by the receiving party. As regards costs incurred in appeal proceedings, applications are often made by large commercial companies or litigants who are insured or who are publicly funded. In such cases a statement of resources stating merely that the applicant is "able to pay its costs out of its own resources" or "is insured" or "is a publicly funded body" will suffice. In such cases the court will assume that the applicant will not suffer any severe financial hardship if the application fails.
(d)   Where the court is determining an application for a costs order against the LSC and the costs were not incurred in a court of first instance, a statement of resources does not have to filed by the receiving party.
25.12   Specimen Forms of Order
   Para A-6 of the Appendix, below, sets out a specimen order for costs against a claimant who is an LSC funded client and also a specimen order for use by a Costs Judge or District Judge when determining the amount of costs payable by an LSC funded client.