Jurisdiction(s):
United Kingdom

Related legal acts

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...

Protective Costs Orders (England and Wales): Corner House principles, procedure, forms, budgets, appeals, closed material and tax cases, variation and costs risks

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Practice notes

This Practice Note explains protective costs orders (PCOs), which restrict the quantum of costs payable in litigation. It outlines when the court may grant a PCO, what such an order looks like, the process for seeking one, and the consequences on costs if the bid fails. It also reviews authorities on PCOs in closed material proceedings, and addresses cost capping orders.

A protective costs order (PCO) exists to ensure claimants are not shut out from advancing meritorious claims purely because of the financial risk. It does so by capping the exposure to costs within the proceedings. While costs capping orders (CCOs) likewise impose limits, PCOs and CCOs must be kept distinct: the jurisdictional bases differ, and their roles and aims are not the same. The court’s power in respect of each derives from separate sources, and the functions served by the two orders are markedly different. Accordingly, they serve different purposes within costs management and should not be conflated either.

In summary:

PCOs cap the costs that a losing party will be required to pay
CCOs cap the costs a party may recover under any later costs order

For more information on CCOs generally, see Practice Note: Costs...

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Web page updated on 21/05/2026

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