The long established rule regarding legal costs is that costs follow the event. This means the the losing party is, as a general rule, obliged to pay the legal costs for both parties. This has been given a statutory footing in the Legal Services Regulation Act 2015.
Section 169(1) of the Legal Services Regulation Act, 2015 provides:
Costs to follow event
169. (1) A party who is entirely successful in civil proceedings is entitled to an award of costs against a party who is not successful in those proceedings, unless the court orders otherwise, having regard to the particular nature and circumstances of the case, and the conduct of the proceedings by the parties, including-
etc. etc.
This general rule can be set aside if the losing party can persuade the Court to use its discretion and set the rule aside in a particular case. There are a number of grounds to be considered, including
(a) conduct before and during the proceedings,
(b) whether it was reasonable for a party to raise, pursue or contest one or more issues in the proceedings,
(c) the manner in which the parties conducted all or any part of their cases,
(d) whether a successful party exaggerated his or her claim,
(e) whether a party made a payment into court and the date of that payment,
(f) whether a party made an offer to settle the matter the subject of the proceedings, and if so, the date, terms and circumstances of that offer, and
(g) where the parties were invited by the court to settle the claim (whether by mediation or otherwise) and the court considers that one or more than one of the parties was or were unreasonable in refusing to engage in the settlement discussions or in mediation.
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