Costs on discontinuance

The discontinuance of a claim can have costs implications. Therefore, when considering whether to discontinue proceedings or if involved in proceedings in which the claimant is discontinuing their claim, it is essential to understand the costs implications.

When discontinuing a claim specific costs consequences are set out in CPR 38.6. Note that this rule does not apply to claims allocated to the small claims court.

For guidance on the process of discontinuing a claim, see Practice Note: Discontinuance of a claim.

General presumption—claimant pays the defendant’s costs

There is a general presumption that the claimant will be liable for the defendant's costs that were incurred up to the date when the notice of discontinuance is served. The rationale for this approach is that discontinuance will generally occur where there is an admission or an acceptance by the claimant that the proceedings should not have been commenced. Where this presumption applies, there is a right to costs and a costs order will be deemed to be made on the standard

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