A guide to the UPC and the UP - Flipbook - Page 419
pointing out that the “costs” in r.152 RoP refer also to those “other expenses”. Therefore the
ceilings apply to all a party’s costs, including Court fees.
20-78 The explanatory note issued by the Preparatory Committee with a draft of the scale of ceilings
for recoverable costs dated 25 February 2016 stated that not only are the ceilings there as a
safety net, but that they should not be viewed as the default level of recoverable costs for all
cases of that value. 153 This indicates that the ceilings will not necessarily be “reasonable and
proportionate” in every action; each case must be considered on its own merits.
When can the Ceiling be Lowered?
20-79 At the request of a party, the Court can lower the applicable ceiling if the amount of recoverable
representation costs to be awarded to the successful party would threaten the economic
existence of the requesting party, especially if the latter is a micro-enterprise, SME, non-profit
organisation, university, public research organisation or natural person. 154 When deciding
upon a request to lower the ceiling, the Court must take into account the circumstances of
the case and all available information, including the procedural behaviour of the parties, the
applicable level of the ceiling in comparison with the annual turnover of both parties, the type
of economic activity of both parties, as well as the impact the lowering of the ceiling would have
on the other party. 155
20-80 Although natural persons are not eligible to claim a reduction of Court fees, 156 they can
request that, in the event that they do not win their case, they should pay a lower amount
of recoverable fees. Although no limit to the reduction has been set, the decision of the
Administrative Committee does not suggest that there should be a complete waiver of
payment of the costs of representation to the prevailing party, but the explanatory note to the
draft dated 25 February 2016 157 states that there is no limit to the level by which the ceilings
may be reduced.
When can the Ceiling be Increased?
20-81 Whereas the Court has discretion to decrease the applicable ceiling by an unspecified amount,
the conditions and the maximum amount by which the ceiling can be increased are specified.
20-82 When the case is particularly complex, or when multiple languages are used in the proceeding,
the Court may upon request by one party, and having regard to the financial capability of all
the parties in the light of the principle of fair access to justice, raise these ceilings as set out in
table 20-7 and as stated below: 158
153
154
155
156
157
158
–
By up to 50 per cent of the applicable level in the scale corresponding to a value of the
proceeding up to and including €1 million;
–
By up to 25 per cent of the applicable level in the scale corresponding to a value of the
proceeding of more than €1 million and up to and including €50 million; and
–
By up to €5 million in cases with a value of the proceeding of more than €50 million.
p.21 Explanatory Note to the Preparatory Committee’s final draft – subject to legal scrubbing – Rules on Court fees and
recoverable costs, 25 February 2016.
art.2(2) Scale of Recoverable Costs.
art.2(3) Scale of Recoverable Costs.
r.370(8) RoP. Reductions in the Court fees are only available to small and micro enterprises. See paragraphs 20-29 and 20-30.
p.21 Explanatory Note to the Preparatory Committee’s final draft – subject to legal scrubbing – Rules on Court fees and
recoverable costs, 25 February 2016.
art.2(1) Scale of Recoverable Costs.
© Bird & Bird LLP | May 2023
A Guide to the UPC and the UP 409
