Appendix 8: guidance on award of costs

The Valuation Office Agency's (VOA) technical manual for Community Infrastructure Levy.

1. Under regulation 121 the appointed person may make orders as to the costs of the parties to an appeal and as to the parties by whom such costs are to be paid. The purpose of such awards is to encourage responsible and reasonable use of the appeal system by appellants and action by collecting authorities, by introducing financial consequences for unreasonable behaviour.

2. Any of the parties to an appeal may apply for an award of costs. Applications for costs should be made with the appeal itself or as part of any representations or comments.

3. Costs that may be applied for in an award of costs application are those incurred by the party concerned in submitting or resisting the appeal, including any professional or legal advice that may have been sought as part of this. Awards cannot extend to compensation for any indirect loses sustained.

4. Guidance on the award of costs in all planning proceedings is contained in CLG Circular 03/09 ‘Costs Awards in Appeals and Other Planning Proceedings’ and this guidance should be followed when considering the award of costs in a CIL appeal. The following extracts are particularly relevant (substituting ‘appointed person’ for Secretary of State or Inspector) :-

a. General principles (paragraph A9)

A costs award, where justified, is an order which can be enforced in the Courts and states that one party shall pay to another party the costs, in full or part, which have been incurred during the process by which the Secretary of State’s or Inspector’s decision is reached. The costs order states the broad extent of the expense the party can recover from the party against whom the award is made. It does not determine the actual amount. Settling the amount is covered in paragraph A21 below.

b. Conditions for an award (paragraph A12)

Costs will normally be awarded where the following conditions have been met:

  • a party has made a timely application for an award of costs
  • the party against whom the award is sought has acted unreasonably and
  • the unreasonable behaviour has caused the party applying for costs to incur unnecessary or wasted expense in the appeal process – either the whole of the expense because it should not have been necessary for the matter to be determined by the Secretary of State or appointed Inspector, or part of the
  • expense because of the manner in which a party has behaved in the process

a. Settling the amount where an award is made (paragraph A21)

Where a costs award or “costs order” is made, the party awarded should first submit details of their costs to the other party, with a view to reaching agreement on the amount. If they are unable to agree, the party awarded costs can refer the matter to a Costs Officer of the Supreme Court Costs Office (now called the Senior Courts Costs Office) for a detailed assessment of the amount. When an award of costs is made the parties will be sent a guidance note on the separate procedure for detailed assessment by the Court.

As explained above, the appointed person is not responsible for determining the amount of the costs so any order made under regulation 121 should only specify which costs are to be paid and by whom.

(http://www.communities.gov.uk/documents/planningandbuilding/pdf/circularcostsawards)

5. The guidance contained in CLG Circular 03/09 is summarised in a CLG guide for appellants called ‘Cost Awards in Planning Appeals’

<p(http://www.communities.gov.uk/documents/planningandbuilding/pdf/costawards)

6. All claims for costs must be considered on the facts of the particular case having regard to the evidence submitted by the parties.

</p(