Appealing Awards Of Cost In Nigeria

• Law Firm: Olajide Oyewole
• Subject Matter: Litigation, Mediation & Arbitration, Court Procedure, Trials & Appeals & Compensation
• Author: Mr Muyiwa Ogungbenro, Ubong Charles Bassey and Olukemi Owolabi
• Published date: 06 April 2023

Introduction

The term "costs" means two things in law. The first is the charge which a solicitor is entitled to make and recover from the client or person for professional services. The other meaning usually given to the word is the sum of money which the Court orders one party to pay another party in an action as compensation for the expenses of litigation incurred.¹ We will be relying on the second meaning in this article.

Awards of cost are a common occurrence in Nigerian litigation and parties typically expect courts to make such awards. Awards of cost can be ordered in favour of a party for the expenses incurred in the suit or for certain aspects of the proceedings. This article provides insight into the different types of cost orders and the attitude of the appellate courts to an application for cost review.

Distinction between the Types of Cost Awards

There are two types of cost awards.² One is awarded in accordance with settled principles of law, while the other is awarded in the court's discretion based on particular facts.³

Awards in accordance with settled principles of law

This type of cost is typically awarded in favour of a litigant who participated in the full course of litigation, or the hearing of an application, or appeal. It is awarded to compensate a successful party for the financial expense expended in prosecuting or defending a case, application or appeal. These types of cost orders include cost of the action, interlocutory costs etc. Nigerian case law supports the position that a successful party is entitled to an award of cost as of right, except he misconducts himself.⁴

Awardsin the exercise of the court's discretion on particular facts

This is usually awarded to punish a defaulting party who fails to either comply with specified court procedure or obey a court order, whether in its entirety or in accordance with the specified time. Notably, there is no appeal regarding this type of cost because it is awarded based on the private opinion of the judge.⁵

Challenging Awards of Cost in Accordance with Settled Principles of Law

A key principle guiding the awards of cost is that cost is awarded at the discretion of the trial judge. The appeal court will not interfere unless it is satisfied that the trial judge did not exercise his discretion judiciously or judicially.⁶ Judicial discretion must be exercised on fixed principles and according to rules of reason and justice. The exercise of discretion must be justifiable. This means the...