Non-party costs orders—guidelines

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

  • Non-party costs orders—guidelines
  • What is a non-party costs order?
  • Key legislation and CPR provisions involving NPCOs
  • Legislation
  • CPR provisions
  • When can a non-party costs order be sought?
  • The requirement for the case to be exceptional
  • Do NPCOs apply to co-defendants or just third parties?
  • Joining a non-party to the proceedings
  • The timing of joinder of the non party
  • More...

Non-party costs orders—guidelines

This Practice Note considers sets out the power in section 51 of the Senior Courts Act 1981 (SCA 1981) that provides the court with a discretion to make a non-party costs order (NPCO) ie a costs order made by the court in favour of, or against, a person (third party) who is not a party to the proceedings. It sets out the approach laid down by the Court of Appeal in Deutsche Bank v Sebastian Holdings when dealing with the provisions in CPR 46.2 dealing. Guidance is provided as to the need for a third party needs to be warned about any potential application for an NPCO as well as the need to join the third party to the proceedings. The Practice Note then looks at what the court will consider and whether causation is required. The following Practice Notes may also be of interest:

  1. Non-party costs orders—application

  2. Non-party costs orders—company directors and shareholders

  3. Non-party costs orders—funders

  4. Non-party costs orders—solicitors

  5. Non-party costs orders—others who they can be made against

What is a non-party costs order?

This is a costs order made by the court in favour of, or against, a person who is not a party to the proceedings. Note: such persons are referred to in court judgments either as non-parties or third parties.

Once a party becomes a party to proceedings, the court’s discretion

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