Court’s discretion

The general position in relation to the court dealing with the issue of costs is that the costs follow the event, ie the loser will be liable for the winner's costs. However, the court has a discretion when it comes to making costs orders and may depart from this general rule. A costs order will set out the basis in which costs are to be assessed, ie standard basis or indemnity basis. For guidance on the General Principles covering these issues, see Practice Notes: Costs assessment—basis of assessment, Indemnity costs orders—principles, Costs orders—the general rule and Costs orders—the court's discretion.

The courts’ discretion when dealing with costs may be impacted where a contract between the parties contains a contractual