Personal Injury Claims & Costs Law
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Questions and Answers

Under what circumstance can a claimant in a personal injury claim be ordered to pay the defendant's costs if the claim fails?

  • If the claim was settled before the court date
  • If the claimant did not provide a correct address
  • If the defendant had no legal representation during the trial
  • If the claim was found to be fundamentally dishonest (correct)

What is a key requirement for a Part 36 offer to settle a claim?

  • It must specify a withdrawal period that is not less than 21 days (correct)
  • It can be withdrawn without any notice
  • It must be made public for transparency
  • It must be presented orally during the court session

Which of the following scenarios would NOT allow a defendant to apply for security for costs?

  • The claimant is acting as a nominal claimant
  • The claimant accepts a Part 36 offer (correct)
  • The claimant failed to provide an adequate address on the claim form
  • The claimant has moved assets outside England and Wales

What action can the offeree take if a Part 36 offer is unclear?

<p>Request clarification within seven days (A)</p> Signup and view all the answers

In what circumstances can a court impose a wasted costs order?

<p>If the solicitor acted improperly, unreasonably, or negligently (D)</p> Signup and view all the answers

What happens to the claimant's costs if they secure an award greater than the defendant's offer?

<p>The defendant will be ordered to pay all costs incurred by the claimant. (C)</p> Signup and view all the answers

What is likely to happen regarding costs if the claimant's awarded amount is less than the defendant's offer?

<p>The claimant may be ordered to pay the defendant's costs incurred after the expiry of the relevant period. (B)</p> Signup and view all the answers

What additional liabilities may the defendant incur if the claimant secures an award greater than their offer?

<p>The defendant could face enhanced interest rates for the period after the acceptance time expired. (A)</p> Signup and view all the answers

Which statement is true regarding the claimant's position when awarded less than the defendant's offer?

<p>The claimant does not benefit from the offer in terms of costs. (B)</p> Signup and view all the answers

What portion of additional damages may be awarded to the claimant if their award exceeds the defendant's offer?

<p>10% on the first £500,000 and 5% for any amount above £500,000. (C)</p> Signup and view all the answers

Which statement regarding the withdrawal of a Part 36 offer is true?

<p>A Part 36 offer can be withdrawn if a notice of withdrawal is served before the relevant period expires. (D)</p> Signup and view all the answers

What happens if a claimant accepts a defendant's Part 36 offer after the expiry of the relevant period?

<p>The defendant's liability for costs is limited to the end of the relevant period. (B)</p> Signup and view all the answers

When is a Part 36 offer considered accepted?

<p>When the offeree serves a written notice of acceptance within the relevant period. (D)</p> Signup and view all the answers

Which scenario allows for a Part 36 offer to be accepted during a trial?

<p>It requires permission from the judge for acceptance. (D)</p> Signup and view all the answers

What determines the assessment of costs when a Part 36 offer is accepted without agreement on costs?

<p>Costs will be assessed on a standard basis if not agreed upon. (C)</p> Signup and view all the answers

Under what circumstance might a claimant in a personal injury case be ordered to pay costs if the claim fails?

<p>The claim was fundamentally dishonest. (C)</p> Signup and view all the answers

Which condition allows a party to recover legal costs on the indemnity basis?

<p>Objecting based on reasons of unreasonable work by the solicitor. (D)</p> Signup and view all the answers

What is a key feature of a Part 36 offer to settle a claim?

<p>It must specify a minimum period of 21 days. (D)</p> Signup and view all the answers

What happens if a party fails to file a cost budget in a multi-track case?

<p>They will be barred from recovering costs, even if they win. (A)</p> Signup and view all the answers

Who can apply for security for costs in a dispute resolution context?

<p>Only the defendant. (C)</p> Signup and view all the answers

Under which basis does the court allow recovery of costs without regard to proportionality?

<p>Indemnity Basis (C)</p> Signup and view all the answers

A Part 36 offer that is deemed unclear allows the offeree to request clarification within what time frame?

<p>7 days. (D)</p> Signup and view all the answers

When is a Directions Questionnaire required to be filed in a multi-track case?

<p>If the claimant is seeking a total under £50,000. (C)</p> Signup and view all the answers

What could lead to a court ordering a solicitor to pay the other party's costs?

<p>The solicitor acted negligently or improperly. (A)</p> Signup and view all the answers

What is the consequence of a costs management order (CMO) being exceeded unreasonably?

<p>A new costs management order must be sought. (D)</p> Signup and view all the answers

What must the winning party do if their detailed bill of costs exceeds the costs budget by more than 20%?

<p>Prepare a statement with reasons. (C)</p> Signup and view all the answers

How many days does the paying party have to file points of dispute regarding a detailed bill of costs?

<p>21 days (A)</p> Signup and view all the answers

What does a security for costs order require from a claimant if the defendant has concerns about the claimant's ability to pay costs?

<p>Provide a bond or pay money into court. (B)</p> Signup and view all the answers

What is the timeframe for a party to challenge a provisional assessment provided by the judge?

<p>21 days (B)</p> Signup and view all the answers

Under what circumstance is a bond available when applying for security for costs?

<p>When the claimant resides outside the jurisdiction. (D)</p> Signup and view all the answers

What happens when a claimant secures an award greater than the defendant's initial offer?

<p>The offer has no effect on the awarded costs. (A)</p> Signup and view all the answers

If the claimant is awarded less than the defendant's offer, what is the likely outcome regarding costs?

<p>The claimant is not responsible for any of the defendant's costs. (B), The offer has no effect on the awarded costs. (D)</p> Signup and view all the answers

What occurs if a claimant's award is under the defendant's offer?

<p>The claimant will be liable for standard basis costs incurred after the relevant period. (C)</p> Signup and view all the answers

What is the consequence for the defendant if they reject a claimant's offer and the claimant later secures a greater award?

<p>The defendant will pay interest on the entire claim at an enhanced rate. (A)</p> Signup and view all the answers

If a pre-issue Part 36 offer is rejected, what costs is the winning party entitled to claim?

<p>Both the cost of pre-action work and litigation costs. (D)</p> Signup and view all the answers

What is the maximum time allowed to request permission to appeal following the court's decision?

<p>21 days (B)</p> Signup and view all the answers

Which of the following is NOT a valid ground for appeal?

<p>The introduction of new evidence during the appeal (C)</p> Signup and view all the answers

What must a party include when submitting a formal appeal form to the court?

<p>A description of the subject of the appeal (D)</p> Signup and view all the answers

What is required for a retrospective request for permission to appeal?

<p>The party must demonstrate the application is reasonable (C)</p> Signup and view all the answers

Who is generally responsible for the costs in litigation?

<p>The losing party (A)</p> Signup and view all the answers

Flashcards

Defendant rejects claimant's offer, claimant wins greater award

If the claimant's award is greater than the defendant's offer, the defendant pays interest on the entire claim at an enhanced rate, costs on the indemnity basis, and additional damages (up to 10% for first £500,000 and 5% for amounts above).

Defendant rejects offer, claimant wins lesser award

If the claimant's award is less than the defendant's offer, the offer has no effect on awarded costs.

Claimant wins greater award than defendant's offer

If the claimant's award is greater than the defendant's offer, the offer has no effect on awarded costs.

Claimant wins lesser award than defendant's offer

The defendant pays the claimant's costs up to the expiry of the offer period. The claimant pays the defendant's costs after the expiry of the offer period.

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Claimant wins lesser award than defendant's offer

If the claimant's award is less than the defendant's offer, the offer has no effect on awarded costs.

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Withdrawing a Part 36 Offer

An offer can be withdrawn before the acceptance deadline if the offeree hasn't accepted it.

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Accepting a Part 36 Offer

A Part 36 offer can be accepted in writing, even after the deadline, if the offeror hasn't withdrawn it.

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Acceptance After Deadline (Defendant)

If a defendant accepts a claimant's offer after the deadline, the court determines who pays the costs.

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Acceptance After Deadline (Claimant)

If a claimant accepts a defendant's offer after the deadline, the defendant only pays costs up to the deadline.

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Pre-Issue Part 36 Offer

If a party makes a pre-trial offer and it's accepted, the court can award them costs related to the initial stages.

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What is a Part 36 offer?

A formal offer to settle a claim, usually made in writing, that cannot be used against the offeror in court. The offer must state it's a Part 36 offer and specify a period where it cannot be withdrawn without a court order.

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Costs in Personal Injury Claims

If a claimant fails to accept a Part 36 offer to settle a personal injury claim before trial, they can be ordered to pay the defendant's costs if the claim ultimately fails.

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Dishonesty in Personal Injury Claims

If a claimant in a personal injury claim is found to be 'fundamentally dishonest,' the defendant can be ordered to pay the claimant's costs even if the defendant wins.

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Wasted Costs Orders

A court can order a solicitor or party to pay the other party's costs if they acted improperly, unreasonably, or negligently during a case.

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When can a claimant pay defendant's costs?

A claimant cannot be ordered to pay a defendant's costs in a personal injury claim unless there is a specific reason, such as a fundamentally dishonest claim, failure to accept a Part 36 offer, or dismissal for lack of cause.

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Standard Basis Costs

The court allows only proportionate costs for the winning party, doubts are resolved in favor of the paying party.

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Indemnity Basis Costs

The court disregards proportionality; the winning party can recover most costs unless the losing party proves the work was unreasonable.

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Cost Budget

A document filed by parties in multi-track cases outlining their estimated legal costs.

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Costs Management Order (CMO)

An order issued by a judge after case management conference, limiting the total costs a party can recover.

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Consequences of Not Filing a Cost Budget

A party who fails to file a cost budget may not be able to recover any costs, even if they win the case.

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Claimant

The party who initiates a legal action.

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Defendant

The party who is being sued in a legal action.

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Application

A formal request by a party to the court to make a determination on a specific issue.

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Statement of Costs

A document that outlines the costs incurred by a party in a legal case.

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Security for Costs Order

A legal order requiring a party to provide financial security to cover potential future costs in case they lose the case.

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Security for costs

When a defendant asks the court to make sure they'll be paid if they win, because the claimant is a high risk (e.g., might not have enough money).

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Part 36 Offer

A formal offer to settle a case that a party can't withdraw without court permission. It's confidential and can't be used in court.

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Personal Injury Claim Costs

A claimant who might lose a personal injury case can still be ordered to pay costs if they were dishonest or didn't accept a good settlement offer.

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Wasted Costs

A court might order a solicitor or party to pay costs if they acted unfairly, unreasonably, or carelessly.

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Meeting a Part 36 Offer

The claimant might be forced to pay costs if they don't meet the defendant's settlement offer. This puts pressure on claimants to consider the offer seriously.

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Defendant rejects offer, claimant wins greater award

If the claimant wins a larger settlement than the defendant's offer, the defendant pays interest on the entire claim at an enhanced rate, costs on the indemnity basis, and additional damages (up to 10% for first £500,000 and 5% for amounts above).

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Pre-Issue Part 36 Offer Rejection (Winning Claimant)

If a pre-issue Part 36 offer is rejected and the claimant wins, they can claim costs for pre-action work in addition to litigation costs.

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Who can grant permission to appeal?

Permission to appeal a court decision can be requested from the court that made the original decision or from a higher court. This allows for a review of the lower court's decision by a more senior judge.

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What are the possible grounds for appeal?

Possible reasons for appealing a court decision include the decision being wrong in fact or law, or based on incorrect instructions from the court. Procedural irregularities that made the decision unfair can also form grounds for appeal.

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What is the time limit to request permission to appeal?

A party seeking to appeal has 21 days from the decision to formally request permission. This request can be made verbally immediately after the decision or later in writing. Failing to meet the deadline may require a special request for permission, which requires demonstrating good reason for the delay.

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What is the formal process for appealing?

The appeal process involves sending a formal appeal form to the court. This form must include a copy of the court's decision, a clear description of the matter being appealed, and a formal application notice.

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What happens during the appeal hearing?

The appeal hearing is limited to reviewing the lower court's decision. The parties can't usually introduce new evidence unless they have permission from the court. There's also an option for a 'rolled-up' hearing where the permission request and the appeal itself are considered together.

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Study Notes

Dispute Resolution: Costs

  • If a claimant gets an award greater than the defendant's offer (e.g., claimant awarded £20,000, defendant offered £15,000), the offer has no effect on costs.
  • If a claimant gets an award less than the defendant's offer (e.g., claimant awarded £15,000, defendant offered £20,000), the defendant is usually ordered to pay the claimant's costs.
  • If a claimant gets a greater award than the defendant's offer (e.g., claimant awarded £20,000, defendant offered £15,000), costs are assessed on the standard basis (reasonable). The defendant is likely to be ordered to pay interest on the entire period after the acceptance period ends. Additional damages of up to 10% for the first £500,000 in damages (and 5% on amounts above) are also possible.

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Description

Test your knowledge on the costs associated with personal injury claims. This quiz covers key aspects such as Part 36 offers, scenarios for security for costs, and the implications of awarded amounts. Improve your understanding of legal procedures and responsibilities in these cases.

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