Q&As

Where Party A is ordered to pay costs to Party B following detailed assessment but has a money judgment against Party B from previous proceedings, is there a valid set-off between the money judgment and costs order so as to avoid enforcement of the costs order?

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Published on LexisPSL on 19/03/2018

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where Party A is ordered to pay costs to Party B following detailed assessment but has a money judgment against Party B from previous proceedings, is there a valid set-off between the money judgment and costs order so as to avoid enforcement of the costs order?

Where Party A is ordered to pay costs to Party B following detailed assessment but has a money judgment against Party B from previous proceedings, is there a valid set-off between the money judgment and costs order so as to avoid enforcement of the costs order?

With the exception of contractual set-off, the key features of set-off are:

  1. both claims must be for the non-payment of money, and

  2. there must be mutuality of debts

For more information, see Practice Note: What is set-off and when is it available? You may also wish to consider Commentary: Scope and significance of set-off: Halsbury's Laws of England (Volume 11) [382] which may be useful for your purposes.

In relation to set-off as between judgments (and, as seen below, this would include an order for costs), an application may be made under section 72 of the County Courts Act 1984 (CCA 1984), which

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