Jurisdiction(s):
United Kingdom

Key definition

Costs definition

What does Costs mean? In litigation, costs are the legal fees, disbursements, court fees and VAT incurred in bringing, defending or appealing a claim, and the sums a court or tribunal may order one party to pay another for those liabilities. The concept is governed by procedural rules and case law rather than a single statutory definition: England and Wales (CPR 44–47), Northern Ireland (RCJ Ord 62), Scotland (where the equivalent term is expenses), and Ireland (Legal Services Regulation Act 2015 and the Legal Costs Adjudicators). The general approach is broadly consistent, subject to local terminology and procedure. Typical features include the discretionary rule...

Debarring and unless orders for non-payment of interim costs: Article 6, evidential requirements and key principles with case law (England and Wales)

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Practice notes

Rationale for enforcing an interim Costs order

It is vital that the courts have practical means to secure compliance with interim costs orders; without such tools the sting of the sanction is blunted. The Court of Appeal in Crystal Decisions v Vedatech Corporation (2008) made the position plain: the court signals what it views as an irresponsible application by directing immediate payment of costs. That measure is designed to impress upon any party, when contemplating an application, that failure may carry an immediate price. If the court cannot enforce the immediate interlocutory costs orders it has properly made, the clout of that sanction is gravely reduced. In cases of this kind, the only sanction that truly works is to insist on payment of interlocutory costs as the price of being permitted to carry on contesting the proceedings. Unless the party against whom a costs order is made is willing to, or can be compelled to, comply...

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Web page updated on 21/05/2026

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