Interim applications—costs recovery

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Interim applications—costs recovery
  • Right to costs recovery following an interim application
  • Does an interim costs order pre-empt the outcome of the litigation?
  • When will a court consider whether to make a costs order?
  • Draft order
  • Submissions
  • What will the court consider when making a costs order?
  • Type of costs orders
  • Costs in the case or costs in the application
  • Costs orders following an application to amend statements of case
  • More...

Interim applications—costs recovery

This Practice Note highlights that such costs are not recoverable as of right and identifies issues to be considered when determining whether, and to what extent, costs incurred for an interim application will be recoverable. It considers costs orders following a trial of preliminary issues plus costs recovery. The Practice Note also considers costs following a number of different types of applications being costs following an application for an interim injunction and costs concerning freezing injunctions applications. It also addresses provision for costs recovery in draft court orders, assessment of costs, fixed costs and interest, payment and enforcement.

Right to costs recovery following an interim application

When a party incurs costs in when dealing with a court application, ie bringing or defending one, that party does not have a right to recover their costs. Whether such costs are recoverable is at the court's discretion. If the court decides to exercise its discretion provision for costs will be included in the court order.

A useful insight into the approach of the court was set out in PDVSA Servicios SA v Clyde & Co LLP (2020) as follows:

‘On interim applications where the outcome is driven by practical considerations (such as the desire to cause the minimum of injustice until the rights and wrongs can be sorted out) costs are generally reserved because it is not possible fairly

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