The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:
The basic rule is that a successful party is entitled to their costs on the standard basis. This means that any doubt as to whether the costs claimed are recoverable is resolved in favour of the paying party. However, when costs are assessed on an indemnity basis, any doubt as to whether the costs have been reasonably incurred or were reasonable in amount being resolved in favour of the receiving party (CPR 44.3(3)), see Practice Note: Indemnity costs orders—principles.
The court also has the power to award interest on costs and there are two different rates of interest, the post-judgment rate and the pre-judgment rate. The post-judgment rate is set by the government and the interest rate of 8% per annum has remained unchanged since 1 April 1994. The pre-judgment rate is not set by the government but should reflect the compensatory nature of the award
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