Costs (English Law) - Reasonableness

Reasonableness

Costs must be "reasonably incurred and reasonable in amount". Costs must be reasonable, even if they are specified by contract, save if contract expressly provides that they need not be reasonable. Reasonableness is assessed against "all the circumstances" and in particular the "seven pillars of wisdom":

  • Conduct of the parties:
    • Before as well as during proceedings;
    • Efforts made to resolve the dispute;
  • Value of the property at issue;
  • Importance of the matter to the parties;
  • Complexity, difficulty or novelty of the case;
  • Skill, effort, specialised knowledge or responsibility required;
  • Time spent on the case;
  • Geographical location where work the work was done.

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