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Section 24: General approach to inter-party costs
Proposal 51
A general rule should be adopted requiring the court to take into account the reasonableness
or otherwise of the parties' conduct in the light of the overriding objective in relation to the
economic conduct or disposal of the claim before and during the proceedings when
exercising its discretion in relation to costs.
The principle that the costs should normally "follow the event" should continue to apply to
the costs of the action as a whole. However, in relation to interlocutory applications, that
principle should be an option (which would often in practice be adopted) but should not be
the prescribed "usual order." Costs orders aimed at deterring unreasonable interlocutory
conduct after commencement of the proceedings should be given at least equal prominence
in practice, with the court being directed to have regard to the underlying objectives
mentioned in relation to Recommendation
2. These powers should not apply to pre-action
conduct.
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