A Costs Order Has Been Made Against You
If a court has made a costs order against you, you are normally required to pay within 14 days. Failure to pay can lead to enforcement action. Limited grounds exist to set aside or appeal the order.
Quick Answer
A costs order must generally be paid within 14 days of the order being made (CPR r.44.7), unless the court specifies otherwise. Non-payment exposes you to enforcement proceedings including charging orders, attachment of earnings, or a third-party debt order. If you believe the order was wrongly made, you must act quickly โ apply to set aside or appeal within strict time limits.
Full Explanation
Under CPR r.44.7, a party required to pay costs must do so within 14 days of the date of the order, unless the court directs otherwise or the amount is to be assessed. If costs are to be assessed โ because the court has made an order for costs to be the subject of detailed assessment โ the obligation to pay arises after the assessment is complete and a certificate is issued by the court.
Costs orders are made pursuant to CPR r.44.2, which gives the court a broad discretion. The general rule is that the unsuccessful party pays the costs of the successful party, but the court can depart from this where conduct, offers to settle, or proportionality arguments are engaged. If you believe the order was made incorrectly โ for example, because the court did not take into account a Part 36 offer you made โ you should apply urgently to vary or appeal.
Enforcement of unpaid costs orders follows the same routes as any other judgment debt once the 14-day period has passed and no application to stay has been made. Creditors may apply for a charging order over property, attachment of earnings, a third-party debt order, or, in serious cases, bankruptcy proceedings where the debt exceeds ยฃ5,000. A costs order therefore carries real financial risk and should not be ignored.
If you wish to challenge the order, the primary route is an appeal under CPR Part 52, filed within 21 days. Alternatively, if the costs were ordered at a stage of the proceedings where further steps remain, you may be able to raise the issue as part of the ongoing case โ for example, where costs were reserved and then ordered in a way you dispute. In some cases, particularly where a default costs certificate has been obtained without your participation, you may apply to set aside the certificate under CPR r.47.12.
If you genuinely cannot pay, consider applying for a time order or instalment order โ courts have a general power to stay execution and may do so where there is evidence of genuine financial hardship. Do not simply ignore the order, as this will accelerate enforcement and may result in further costs sanctions.
Legal Basis
- ยงCPR r.44.2 โ Court's discretion as to costs
- ยงCPR r.44.7 โ Time for complying with an order for costs
- ยงCPR Part 52 โ Appeals
- ยงCPR r.47.12 โ Default costs certificate
What To Do
Read the Order โ Date, Amount, and Terms
Identify the exact date the order was made, the amount (if a fixed sum) or whether costs are to be assessed, and the deadline for payment. Note whether any stay of execution was granted.
Pay Within 14 Days or Apply to Vary
If you can pay, do so within 14 days to avoid enforcement. If you cannot, apply promptly to the court for a stay of execution or an instalment order, supported by a witness statement exhibiting evidence of your financial position.
Consider an Appeal if the Order Was Wrongly Made
If you believe the costs order was wrong in law or principle โ for example, the court failed to take into account a Part 36 offer โ file an appellant's notice within 21 days. Seek legal advice on the realistic prospects before incurring further costs.
Engage With Detailed Assessment if Costs Are Not Fixed
Where costs are to be subject to detailed assessment, ensure you serve points of dispute on the receiving party within 21 days of receiving their bill of costs. Failure to serve points of dispute may result in a default costs certificate being issued against you.
Understand Enforcement Consequences
If you do not pay and do not apply for a stay, the other party can enforce the order as a judgment debt after 14 days. Enforcement methods include charging orders, attachment of earnings, and third-party debt orders. If the costs debt exceeds ยฃ5,000, bankruptcy proceedings are possible.
Important Deadlines
Important Warnings
Ignoring a costs order is one of the most common mistakes litigants make โ enforcement action can begin immediately after 14 days without further notice.
A costs order made during proceedings (as opposed to a final order) may be enforced as a judgment debt even while the case continues.
Appealing a costs order does not automatically stay enforcement โ you must apply separately for a stay pending appeal.