Principles of costs recovery

Cost orders—the general rule and the court's discretion

The general rule on costs recovery is that the unsuccessful party will pay the successful party’s costs (CPR 44.2(2)(a)). However, the court has the discretion to make a different order (CPR 44.2(2)(b)). It can be seen from the authorities that the general rule might not apply for example where there has been a failure to recover the amount claimed, where there are sanctions or where the claim is struck out for being disproportionate. The general rule will also not apply in the specific circumstances set out in CPR 44.2(3). In addition, the court will be prepared to depart from the general rule when it is not in fact clear who is the winning party. For guidance, see Practice Notes: Costs orders—the general rule and Costs orders—the court's discretion.

Costs—recovery of costs under contractual