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PERSONAL INJURIES PROCEEDINGS ACT 2002 - SECT 56
Costs in cases involving damages awards of not more than an amount equal to the upper offer limit
56 Costs in cases involving damages awards of not more than an amount equal to
the upper offer limit
(1) This section applies if a court awards an amount equal to the upper offer
limit or less in damages in a proceeding based on a claim, but it does not
apply to the costs of an appellate proceeding.
(2) If the court awards an
amount equal to the lower offer limit or less in damages, the court must apply
the following principles— (a) if the amount awarded is less than the
claimant’s mandatory final offer but more than the respondent’s, or the
respondents’, mandatory final offer, no costs are to be awarded;
(b) if the
amount awarded is equal to, or more than, the claimant’s mandatory final
offer, costs are to be awarded to the claimant on an indemnity basis as from
the day on which the proceeding started, but no award is to be made for costs
up to that date;
(c) if the amount awarded is equal to, or less than, the
respondent’s, or the respondents’, mandatory final offer, costs are to be
awarded to the respondent or respondents on a standard basis as from the day
on which the proceeding started, but no award is to be made for costs up to
that date.
(3) If the court awards more than an amount equal to the lower
offer limit but not more than an amount equal to the upper offer limit in
damages, the court must apply the following principles— (a) if the amount
awarded is less than the claimant’s mandatory final offer but more than the
respondent’s, or the respondents’, mandatory final offer, costs are to be
awarded to the claimant on a standard basis up to the declared costs limit;
(b) if the amount awarded is equal to, or more than, the claimant’s
mandatory final offer, costs are to be awarded to the claimant on the
following basis— (i) costs up to the date on which the proceeding started
are to be awarded on a standard basis up to the declared costs limit;
(ii)
costs on or after the date on which the proceeding started are to be awarded
on an indemnity basis;
(c) if the amount awarded is equal to, or less than,
the respondent’s, or the respondents’, mandatory final offer, costs are to
be awarded on the following basis— (i) costs up to the day on which the
proceeding started are to be awarded to the claimant on a standard basis up to
the declared costs limit;
(ii) costs on or after the day on which the
proceeding started are to be awarded to the respondent or respondents on a
standard basis.
(4) The court must not award costs to a party related to the
introduction of evidence by the party that is unnecessarily repetitive.
Example— If a claimant calls 2 or more expert witnesses from the same area
of expertise to give evidence to substantially the same effect, and the
claimant is entitled to costs of the proceeding under the principles laid down
in this section, the court might only allow costs related to 1 of the expert
witnesses.
(5) Unless an award of damages is affected by factors that were
not reasonably foreseeable at the time of the exchange of mandatory final
offers, the court must not award costs to a party related to investigations or
gathering of evidence by the party after— (a) the conclusion of the
compulsory conference; or
(b) if the parties or the court dispensed with the
compulsory conference, the day when the parties completed the exchange of
mandatory final offers.
(6) If an award of damages is affected by factors
that were not reasonably foreseeable by a party at the time of making the
party’s mandatory final offer, the court may, if satisfied that it is just
to do so, make an order for costs under subsection (2) or (3) as if the
reference to a mandatory final offer in the relevant subsection were a
reference to a later offer made in the light of the factors that became
apparent after the parties completed the exchange of mandatory final offers.
Example— Suppose that a claimant’s medical condition suddenly and
unexpectedly deteriorates after the date of the final offers and the court
makes a much higher award of damages than would have been reasonably expected
at that time. In that case, the court may ignore the mandatory final offers
and award costs on the basis of later offers of settlement.
(7) This
section does not limit the court’s power under section 48 .
(8) In this
section—
"party" does not include contributor.
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