What is the likelihood of recovering full costs of winning an expectation damages case?

Question

Suppose Bob from this question hired a lawyer and won the case against the seller in England (the seller was stubborn enough not to settle).

How likely is that Bob will also be awarded 100% of the legal costs and disbursements?

Answer 1

canada

It is extremely unlikely for a plaintiff to be awarded full legal costs (also known as "solicitor and client costs" or "full indemnity basis") and disbursements.

Instead, a successful plaintiff is normally awarded costs on a tariff scale based on the complexity of the litigation steps, often offsetting a portion, but not all, of the total legal costs. All reasonable disbursements are also generally covered.

Answer 2

It’s a possibility

Costs are complicated and, ultimately, discretionary.

The general rule in common law jurisdictions outside the USA is that costs follow the event. That is, the successful party is awarded costs on a party-party (i.e. at scheduled rates) basis. But there are lots of reasons for deviating from the rule. Party-party rates generally cover 50-60% of the actual costs (YMMD).

To get an indemnity basis order requires:

• A hopeless case
• Abuse of process
• Unreasonable conduct or “relevant delinquency”
• Fraud and misconduct
• Offers of compromise and Calderbank letters
• Avoidance of arbitration or dispute resolution clauses

Notwithstanding, the costs must still be reasonable. Engaging a King’s Counsel at $20,000 a day for a $500 case would not be reasonable.