header-logo header-logo

14 May 2008
Issue: 7277 / Categories: Case law , Judicial line , In Court
printer mail-detail

Costs: contract v small claims regime

Does the small claims restricted costs regime override a contractual entitlement to costs...

Does the small claims restricted costs regime override a contractual entitlement to costs in favour of the successful party?

There is a strong case for saying that the court simply has no power to take a contractual entitlement to costs into account when applying CPR 17.14 (“The court may not order a party to pay…costs except…”) which may be usefully compared with the less prescriptive CPR 451.1 dealing with fixed costs (applying fixed costs  “unless the court orders otherwise”—see Church Commissioners v Ibrahim [1997] 1 EGLR CA in which it was held that a right to indemnity costs in  a  tenancy agreement should displace fixed costs, but this is a pre-CPR decision).

Whether a contractual entitlement would be enforceable by a fresh claim to sweep up the difference between the indemnity costs and the small claims restricted costs ordered has not been decided.

There are respectable arguments both ways.

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—William Hallett & Lorna Scully

Anthony Collins—William Hallett & Lorna Scully

Anthony Collins hires two talented legal directors

Switalskis—five appointments

Switalskis—five appointments

Firm expands national abuse compensation team

Mathys & Squire—nine promotions

Mathys & Squire—nine promotions

IP firm announces new partners and senior promotions across UK offices

NEWS
A High Court ruling has sent a jolt through the legal profession after a newly qualified solicitor used an internal AI tool to produce court correspondence containing a fabricated legal citation
A significant data privacy ruling has clarified what counts as valid consent under UK data protection law
Executors may be overlooking billions of pounds in estate assets hidden in forgotten investments and misplaced share certificates
Britain’s booming non-surgical cosmetics market is operating in what some critics describe as a regulatory ‘Wild West’
Family contact disputes are becoming an increasingly prominent feature of Court of Protection litigation
back-to-top-scroll