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Costs Orders

In some criminal cases, a costs order will be made.  A costs order is a ruling requiring that one party has to pay some or all of the expenses of the other party. A costs order must provide details of the costs payable.

When Will A Costs Order Be Made?

In criminal matters, a costs order may be made at any of the following five stages of the court proceedings:

  • when the proceedings commence;
  • after a determination has been made but before the hearing is completed;
  • when the trial is adjourned or is abandoned;
  • at the hearing or after the hearing pending appeal;
  • on appeal.

Types Of Costs Orders

Different types of costs orders can be made depending on the circumstances.

Party/Party costs

A Party/Party Costs Order is the most common type of costs order that a court will make. It is an order that requires one party to pay the expenses of the other party. Party/party costs orders are designed to compensate one party for their legal expenditure.

Solicitor/Client Costs

These are the costs that a person pays their lawyer. Fees for lawyers are required regardless of the outcome of your case. Generally lawyers bill clients weekly or monthly depending on what costs agreement you signed.

Indemnity Costs

An indemnity costs order is an order that one party should pay the majority of the costs to compensate the other party for their expenditure involved in the litigation. This type of costs order will be made in circumstances where one party started the proceedings with no real chance of winning or where one party has conducted itself in a way that unnecessarily prolonged the proceedings. In situations where an indemnity costs order is made, the losing party will be required to pay all of the other party’s expenditure.

Costs After The Proceeding

If a party is successful in having their costs awarded after the proceeding has concluded, the other party is required to pay them. The party the costs order has been made against can apply to the Supreme Court to have the costs reassessed.

Financial Impact Of A Costs Order

A costs order is an enforceable court judgement. If you’re ordered to pay the other party’s costs and you can’t pay or reach an agreement with the other party, they can start bankruptcy proceedings against you. If bankruptcy proceedings are started against you, any assets you have could be liquidated to pay the debt and there could be other consequences.

If you require any information on costs orders or any other legal matter, contact Armstrong Legal.

Michelle Makela

This article was written by Michelle Makela

Michelle has over 15 years experience in the legal industry, working across commercial litigation, criminal law, family law and estate planning.  Michelle has been involved in all practice areas of the firm and in her personal practice has had experience in litigation at all levels (State and Federal Industrial Tribunals, the Supreme Court, Court of Appeal, the Federal Court, Federal...

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