Blog

Blog (1)

Friday, 22 August 2014 11:47

Costs

Written by

The law provides that solicitors shall as soon as practicable set out the costs that will be charged or where this is not possible an estimate of the charges. Again, where this is not possible solicitors must set out the basis of their charges.

There are two main types of costs namely

a)Party and Party costs

b)Solicitor and Client costs

Party and Party costs are the fees and outlays reasonably incurred by one of the parties to the action which one side is obliged to pay –the Party and Party costs may not cover the entire of the costs incurred in the action.

Solicitor and Client costs are the costs you are obliged to pay your solicitor and are not recoverable under Party and Party costs.

Any party or client is entitled to have the costs measured and assessed by an independent official called the Taxing Master. His or her duty is to assess the fair and reasonable remuneration that a party has to pay to the other side.

Security for Costs

A defendant can apply to Court for an order for security of costs against a plaintiff. The rules provide that the defendant seeking security to file a satisfactory Affidavit showing a defence upon its merits and the onus is on the defendant to establish reasonable grounds for entitlement to the order.  The Court must determine if the Plaintiff is sufficiently solvent to meet a costs order if unsuccessful in the proceedings. 

S.I No 307 of 2013: Rules of the Superior Courts (Lugano Convention, Maintenance and Service) 2013 provides that no defendant shall be entitled to an order for security of costs solely on the ground that the Plaintiff is a foreign national or that he or she is not domiciled or resident in the State in which enforcement is sought.

In order to succeed the defendant must have a prima facie defence and the court has discretion whether to grant the order or not.

In the case of plaintiff companies registered abroad, the Companies acts do not apply to these companies but the principle set out in S.390 of the Companies act is the correct test to be applied. S 390 provides that if there is reason to believe that the company will be unable to pay the costs of a successful defendant, then the Court may require sufficient security to be given for costs and the Judge can stay all proceedings until the security is given –see Flannery & Anor –v- Walters & ors 2014 IEHC 373 or see judgements section 22/07/2014 at www.courts.ie