Snapshot: Introduction To Litigation Costs In Jersey

• Published date: 06 December 2022
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation
• Law Firm: Ogier
• Author: Mr Damian Evans, Matthew Davies and Charlotte Finley

Costs are rightly at the forefront of a client's mind throughout the lifetime of a dispute. In this snapshot, we set out the key principles of costs in Jersey and an overview of what you can expect.

Standard versus indemnity basis

At the conclusion of a hearing (whether interlocutory or the final hearing in the case), the Court exercises discretion as to who is liable for costs. The general rule (which is, of course, subject to exceptions) is that the losing party pays the costs of the winning party. When awarding costs, the Court will either do so on the "standard basis" or the "indemnity basis".

• On the standard basis, a party can expect to recover 60-70% of their costs
• On the indemnity basis, a party can expect to recover 75-90% of their costs

The default position by the Court is to order costs to be paid on the standard basis, and the Court will only move from this if one or more aspects of the proceedings take the case out of the ordinary. Examples of when costs might be ordered on the indemnity basis would include where one party's litigation conduct has been particularly poor or obstructive, or where they have committed fraud.

For further information on obtaining indemnity costs please see our article Snapshot: obtaining indemnity costs against a litigant in Jersey.

Factor A versus Factor B uplift

When a party is awarded costs on the standard basis, the next stage is for costs to be "taxed". That involves working out how much the winning party is entitled to recover by applying the relevant Factor A rate together with any permissible Factor B uplift. Factor A rates are set by Jersey practice directions and provide for the recoverable hourly rates for lawyers. The recoverable rates are based on years qualified or rank (for example, a lawyer over five years qualified has a set hourly rate of '240). The Factor B uplift is effectively a percentage increase...