Q&As

Where a final third party debt order has been made under CPR 72, what is the third party’s entitlement to its costs and expenses?

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Produced in partnership with Jonathan Edwards of Radcliffe Chambers
Published on LexisPSL on 28/04/2017

The following Dispute Resolution Q&A produced in partnership with Jonathan Edwards of Radcliffe Chambers provides comprehensive and up to date legal information covering:

  • Where a final third party debt order has been made under CPR 72, what is the third party’s entitlement to its costs and expenses?
  • Third party debt orders
  • Banks and building societies—statutory entitlement
  • Other third party costs
  • Recourse against the judgment debtor

Where a final third party debt order has been made under CPR 72, what is the third party’s entitlement to its costs and expenses?

In answering this Q&A, we have considered the following:

  1. the standard wording of the order

  2. where the third party is not a bank

  3. the costs provisions under CPR 45.1(2)(g) and the fixed costs set out in CPR 45.8, Table 5

Third party debt orders

A third party debt order requires a party which owes a debt to the judgment debtor to pay the judgment creditor instead. Where a final order is made requiring such a payment, the third party’s debt to the judgment debtor is discharged to the extent that the judgment creditor is paid (CPR 72.9). Often, the third party will be a bank or building society with which the judgment debtor has an account, but not always.

The judgment creditor’s fixed costs of enforcement are specifically dealt with at CPR 72.11, and the amount is stipulated at CPR 45.8 (Table 5). The judgment creditor is entitled to allocate money received to paying off those costs before applying the surplus in reduction of the judgment debt itself. However, neither CPR 72.11 nor CPR 45.8 deal with the costs and expenses of the third party at all.

See final form third party debt order.

For further information, see also:

  1. Practice Note: What is a third party

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