Examination Timing: 00H01M02S
You are instructed by Olivia Smith, the claimant in a breach of contract dispute, who now wishes to apply for summary judgment. Should Olivia be successful, the costs of the application are fixed under the CPR. You estimate, however, that the costs of preparing for and attending the hearing of the application will far outweigh the fixed costs specified.
Which of the following best describes how you should advise Olivia?
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Your selected option: C
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Under the Civil Procedure Rules (CPR), costs in certain applications, such as summary judgment applications, are fixed. This means that the recoverable costs are predetermined and limited by the CPR. However, it is possible to request a higher sum if the fixed costs do not adequately cover the actual costs incurred. Despite this, the client must understand that if the court does not grant the higher amount, they will be responsible for any shortfall in accordance with the terms of their engagement letter with the law firm. This ensures transparency and proper client expectations regarding the potential financial implications of the application.
Key Point: Fixed costs under the CPR limit the recoverable costs in specific applications, but a higher amount can be requested. Clients must be aware that they are responsible for any shortfall if the higher costs are not awarded.
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