Settlement—costs recovery
Settlement—costs recovery

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

  • Settlement—costs recovery
  • Settlement is made 'subject to costs'—what costs are recoverable?
  • Settlement prior to commencement of proceedings
  • Settlement after commencement of proceedings—pre-action costs
  • Settlement after commencement of proceedings—difficulties determining costs
  • Settlement after commencement of proceedings—is a trial required to determine costs?
  • Settlement after commencement of proceedings—no order as to costs
  • Settlement after commencement of proceedings—factors the court will consider
  • Settlement of an application
  • Appealing a costs order following settlement

This Practice Note considers the costs position where parties have reached a settlement as to the underlying substantive dispute but have been unable to reach an agreement as to costs. It considers the position where settlement occurs prior to commencement of proceedings and there is no agreement as to costs. If certain criteria are met then a costs-only Part 8 claim may be commenced to recover costs. If settlement occurs following the commencement of proceedings, a Part 8 application is not available. The Practice Note explores how parties can request that the court make a costs order where the parties have not reached an agreement about costs and whether the court may require a full trial to resolve the costs dispute. The Practice Note also considers the position where parties settle an application but with no agreement about costs recovery.

This Practice Note does not consider the costs position when dealing with proceedings in which there has been a Part 36 offer or a Calderbank offer. For guidance on the costs consequences of such offers, see Practice Note: Settling disputes—settlement offers (Calderbank, WPSAC and Part 36)—Costs consequences—differences between Calderbank offers and Part 36 offers.

This Practice Note does not consider the court’s power to award indemnity costs following the refusal to accept a settlement offer (falling outside the scope of Part 36), which