Charging orders

NOTE: with effect from 14 August 2023, the County Court Money Claims Centre (CCMCC) and the County Court Business Centre (CCBC) are renamed as the Civil National Business Centre (CNBC)—see: LNB News 14/08/2023 12—CCMCC issues name and performance update.

Where do I find the rules relating to charging orders?

Charging orders can be a useful method of enforcing a judgment debt for money. They are a heavily procedural process and therefore there is a cost associated with them. They may also involve dealing with interests of persons other than a judgment debtor such as a co-owner of real property. That can add an extra level of complication and cost,

They are governed by the provisions of the Charging Orders Act 1979 (COA 1979), CPR 73 and its accompanying Practice Direction (CPR PD 73).

In addition to or, as an alternative to a charging order, a judgment creditor may also seek to protect their position in relation to any claimed entitlement to an interest in securities or funds in court by applying for a stop order or (in relation to securities only) a stop notice.

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Third party costs—Court of Appeal confirms stay pending detailed assessment is case management decision (Federal Republic of Nigeria v VR Global Partners LP)

Dispute Resolution analysis: The Court of Appeal has upheld the decision of a judge at first instance to stay an application for a third-party costs order under section 51 of the Senior Courts Act 1981 until after the conclusion of the detailed assessment of the underlying bill of costs. Dismissing Nigeria’s appeal, the Court of Appeal held that there is no presumption that a third-party costs application should be determined before a detailed assessment. The question is purely one of case management, to be decided in accordance with the interests of justice and the overriding objective. The decision, being within the scope of discretion allowed a judge, was not amenable to appeal; that a different judge would have reached a different conclusion was not in point. Where there is a real question whether any further sum will be payable following assessment (particularly where a substantial payment on account has already been made and costs are to be assessed on the standard basis), it is legitimate to stay the third party application to avoid wasting court resources on what may prove to be a pointless satellite exercise. Of general and at least equal significance to costs practitioners were the Court of Appeal’s strong comments (obiter dicta in strict terms) deprecating disproportionate detailed assessment processes and endorsing the use of sampling as a case management tool in cases involving very significant bills of legal costs. Written by Lauren Godfrey, barrister at Gatehouse Chambers.

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