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

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
From gender-critical speech to notice periods and incapability dismissals, employment law continues to turn on fine distinctions. In his latest employment law brief for NLJ, Ian Smith of Norwich Law School reviews a cluster of recent decisions, led by Bailey v Stonewall, where the Court of Appeal clarified the limits of third-party liability under the Equality Act
Non-molestation orders are meant to be the frontline defence against domestic abuse, yet their enforcement often falls short. Writing in NLJ this week, Jeni Kavanagh, Jessica Mortimer and Oliver Kavanagh analyse why the criminalisation of breach has failed to deliver consistent protection
Assisted dying remains one of the most fraught fault lines in English law, where compassion and criminal liability sit uncomfortably close. Writing in NLJ this week, Julie Gowland and Barny Croft of Birketts examine how acts motivated by care—booking travel, completing paperwork, or offering emotional support—can still fall within the wide reach of the Suicide Act 1961
back-to-top-scroll