FIXED COSTS: ADDITIONAL AMOUNTS FOR “UNREASONABLE BEHAVIOUR”

We are continuing with our bite sized examination of the fixed costs regime by looking at CPR 45.13. This allows the court to reduce, or increase, the fixed costs for “unreasonable behaviour”.  The rule appears only to allow this variation to be by 50% (and no other percentage).  “Unreasonable behaviour” is defined, but perhaps not helpfully.

“unreasonable behaviour is conduct for which there is no reasonable explanation”

CPR 45.13

Unreasonable behaviour
45.13.—(1) Where, in a claim to which Section VI, Section VII or Section VIII of this
Part applies, an order for costs is made in favour of a party whom the court considers has
behaved unreasonably, the other party may apply for an order that those costs be reduced by
an amount equivalent to 50% of the fixed recoverable costs which would otherwise be
payable.
(2) Where, in a claim to which Section VI, Section VII or Section VIII of this Part
applies, an order for costs is made against a party whom the court considers has behaved
unreasonably, the other party may apply for an order that those costs be increased by an
amount equivalent to 50% of the fixed recoverable costs which would otherwise be
payable.
(3) In this rule—
(a) unreasonable behaviour is conduct for which there is no reasonable explanation;
and
(b) “fixed recoverable costs which would otherwise be payable” does not include—
(i) VAT;
(ii) any additional amounts under rules 36.17 or 36.24; or
(iii) any disbursements.