Overview
This lecture covers rules and procedures for costs and enforcement of judgments in civil litigation, including methods of enforcement, limitation periods, and the calculation and allocation of litigation costs.
Judgment Enforcement
- Judgments are generally enforceable once authenticated, except for equitable relief and conditional judgments.
- Enforcement may be stayed at the court's discretion upon application.
- Judgments are subject to a 12-year limitation period; after 6 years, leave is needed to issue enforcement writs.
- Preemptive measures include freezing orders to prevent asset removal and attachment orders when a defendant may flee jurisdiction.
- Enforcement should begin promptly; creditors can gather information about debtor assets via legal searches.
- Enforcement hearings allow creditors to obtain financial information from debtors.
- Installment orders allow debts to be paid over time rather than in a lump sum.
- Warrants of execution direct the sheriff to seize and sell debtor property, following rules to minimize hardship and cost.
- Enforcement warrants can be registered on property titles for additional security.
Types of Enforcement Orders
- Recovery of land allows for removal of trespassers via warrant for possession.
- Detained goods may be recovered in kind or by money order for their value.
- Interest on judgments accrues as set by practice directions.
- Garnishee (redirection of debts) orders direct third parties who owe money to the debtor to pay the creditor.
- Redirection of earnings enables creditor to obtain part of a debtor's wages.
- Charging orders give creditors an interest over securities held by the debtor.
- Receivers may be appointed to collect income from debtor's property, used as a last resort.
- Contempt, sequestration, and committal provide sanctions for non-compliance, including fines, imprisonment, or seizure of assets.
- Enforcement of interstate and foreign judgments is facilitated under federal legislation, based on mutual recognition.
Bankruptcy and Winding Up
- Bankruptcy (individuals) and winding up (companies) can be used to recover debts when debtors are uncooperative.
- Serving a bankruptcy notice starts a 14-day payment period; failure leads to bankruptcy proceedings and asset distribution.
Costs in Litigation
- Costs are discretionary but typically ordered against the losing party (“costs follow the event”).
- Costs are awarded on a standard (partial) or indemnity (fuller) basis; standard costs usually recover less than actual expenses.
- Unrepresented parties cannot recover costs for their own time, but self-representing solicitors may.
- Costs may be awarded against lawyers for misconduct or negligence.
- Settlement in the wrong court may lead to reduced or apportioned costs.
- Interlocutory costs are usually deferred until case conclusion.
- Various orders specify how and when costs are paid; if silent, presumptions apply.
- Public interest cases and impecunious parties may not follow the usual cost rules.
Assessment and Appeal Costs
- Costs are assessed by a registrar or cost assessor if parties can't agree, often under a “piecemeal” formula.
- Appeal costs may be covered by special funds under the Appeal Cost Funds Act if fairness dictates.
Key Terms & Definitions
- Enforcement Warrant — Court order authorizing seizure/sale of debtor's property to satisfy a judgment.
- Garnishee Order — Order redirecting debts owed to the debtor by third parties to the creditor.
- Charging Order — Grants creditor a charge over debtor’s securities.
- Receivership — Appointment of receiver to manage debtor's property to pay debts.
- Indemnity Costs — Costs covering all legal expenses except those unreasonably incurred.
- Standard Costs — Court-assessed costs, usually less than full legal expenses.
- Warrant of Execution — Order to sheriff to enforce judgment by seizing and selling property.
- Bankruptcy Notice — Formal demand for payment initiating bankruptcy proceedings if not satisfied.
Action Items / Next Steps
- Review relevant rules: UCPR chapters 19 (installment orders), 17A (costs), and key rules cited (e.g., rules 681, 702, 703).
- Study the processes for enforcement, cost assessment, and appeals in the study guide.
- Ensure understanding of how to draft enforcement applications and cost submissions.