Costs

In principle, and subject to the tests of reasonableness, proportionality and, where it applied, necessity, a claimant was entitled to recover the costs of advising and taking instruction on a settlement agreement and then in distributing any payout, as those plainly formed part of the costs of proceedings. However, it was open to a party to argue, and for a court to find, that the parties had agreed a departure from the normal rule. It was also clear that a judge could conclude that there should be a cut-off date after which no further costs of distribution could be claimed, although care had to be taken not to penalise a claimant unfairly by depriving him of the right to recover costs which had been reasonably and necessarily incurred solely because they were incurred later than they should have been.