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There is a lot of information to assimilate when considering the approach the courts will take when making a costs order. In this topic guidance is provided on the general rules which apply when considering the issue of costs and specific types of costs orders.

The power to make a costs order derives from section 51 of the Senior Courts Act 1981 (SCA 1981). The power is broad but is made expressly ‘subject to … rules of court’.

There are several CPR provisions governing the exercise of the court’s discretion on costs, in particular:

1. •

   CPR 44—the court’s general discretion as to costs

2. •

   CPR 45—fixed costs

3. •

   CPR 46—costs in special cases

4. •

   CPR 36—costs in respect of Part 36 offers

As well as ordering the payment of costs, the court can manage the costs incurred by the parties during proceedings by making a costs management order (CMO). A CMO can be made at any time but is generally made at the costs management conference when considering the parties’ costs budgets. For information on CMOs, see: Costs budgeting and costs management—overview.