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In England and Wales, it appears that a surprisingly high percentage of settlements are
reached on the basis that costs should go to taxation. The Woolf Network's 5th survey
reported the following question and the answers received :-
"In what proportion of cases, which settle prior to issue, are you finding it
necessary to
involve the court in resolving costs issues
Cases
Respondents
0% - 10%
44%
10% - 30%
22%
30% - 50%
16%
50% - 80%
12%
80% - 100%
6%
It is of course not ideal that a case that has settled should require the court's
involvement to resolve a residual dispute as to costs and it is to be hoped that parties
would make every effort to reach global settlements to avoid this. Nonetheless, it
would be desirable to have a rule along the lines of CPR 44.12A so as to avoid the
even less desirable consequence of having no settlement at all by virtue of an
unresolved disagreement as to costs.
Unless the parties have contracted for some other treatment, it would be appropriate
that all such costs be taxed on a party-and-party basis and that such proceedings be
started by originating summons with detailed procedures regulated by practice
direction.
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