costs
pl. n. Sums payable for legal services. A distinction is drawn between contentious and noncontentious costs (broadly, the distinction between costs relating to litigious and nonlitigious matters). Solicitors’ costs are normally divided into profit costs (representing the solicitor’s profit and overheads) and disbursements (any out-of-pocket expenses he may have incurred in the conduct of the case).

In civil litigation, the court has a wide discretion to make an award in respect of the costs of the case, but the general principle applied is that the loser of the case must pay the costs of the winner (this was previously known as costs follow the event). The court will order on what basis the costs will be assessed. In normal adversary litigation this is the standard basis, in which the loser pays a reasonable sum in respect of all costs reasonably incurred by the winning party (see also indemnity basis). If the court does not make an order for payment of fixed costs (i.e. the amount allowed in respect of solicitors’ charges), or fixed costs are not provided for, the amount of costs payable will be determined by the court or by a costs officer (see assessment of costs). See also costs in any event; costs in the case; costs reserved.

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