Wasted costs orders
Wasted costs orders

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

  • Wasted costs orders
  • What is a wasted costs order?
  • Alternative to a wasted costs order—breach of solicitor's warranty
  • Power of the court to make an order
  • Test and principles the court will apply
  • Test to be applied
  • Principles
  • What will the court look for?
  • Principles the court will apply—what is meant by improper, unreasonable, negligent
  • Who can a wasted costs orders be made against?
  • More...

What is a wasted costs order?

A wasted costs order is defined in CPR PD 46, para 5.1 as an order:

  1. that a legal representative pay a sum in respect of the costs of a party; such sum to be specified or to be assessed, or

  2. for costs relating to a specified sum or items of work that are disallowed

Wasted costs orders are not available to a satisfy a disgruntled party who has been unable to obtain an effective costs order ie they cannot be used as a back door to recover costs not otherwise recoverable. This was clearly set out by the Court of Appeal in Ridehalgh v Horsefield.

Alternative to a wasted costs order—breach of solicitor's warranty

It is possible that where it is considered that an application for wasted costs against a solicitor would not succeed, an application for breach of an implied warranty of authority on the part of the solicitors could be brought where that breach resulted in damages by way of costs unnecessarily incurred. This potential route was put forward as an alternative to a wasted costs order in Zoya Ltd v Ahmed. Both the wasted costs and the breach of solicitor’s warranty applications failed—the defendant could not demonstrate reliance on the warranty in the sense of being induced by it to act to his prejudice. However, the case illustrates the

Popular documents