Judiciary-Poetry-Logo
JPoetry

THE AWARD OF COSTS – GUIDING PRINCIPLES

Reach more audience. Place advert here.

Dictum

It is trite that the award of costs is always at the discretion of the court but such discretion must be exercised judiciously and judicially. It is also a well settled principle that costs follow event and a successful party is entitled to costs except where there are special reasons for depriving him of such entitlement and these ought to be shown by the judge. See OBAYAGBONA VS OBAZEE (1972) 5 SC 247. AMIRA NIG) LTD VS MAL (NIG) LTD. (2001) 17 NWLR (PT 742) 269 and DONATUS IDAM VS ALEX IDEMYOR MENE (2009) 17 NWLR (PT 1169) 74 … It is worthy of note that costs are not imposed as a punishment on the party who pays them, neither are they awarded as a bonus to the benefiting party. The party entitled should only be indemnified for his out of pocket expenses and be compensated for the true and fair expenses for the litigation. See BUHARI VS OBASANJO (2005) All FWLR (PT 258) 1604; KUKOYI VS ODUFALE (1965) 1 All NLR 300 and OLASOPE VS NATIONAL BANK OF NIGERIA (1985) 3 NWLR (PT 11) 147.

— S.C. Oseji, JCA. ACB v Ajugwo (2011) – CA/E/66/2006

Was this dictum helpful?

SHARE ON

APPEAL TO SET ASIDE COST AWARDED AGAINST COUNSEL SHOULD PROVIDE TENABLE REASON

Before I round off, learned senior counsel for the Appellant has urged this court to set aside the costs of #5 million awarded against J.O. Olotu, Esq, counsel who settled the Appellant’s brief at the lower court. Without belabouring the point, let me state clearly that the Appellant has not placed before this court, any tenable reason or argument why the lower court’s order as to costs should be set aside or interfered with. Hence, the Appellant’s prayer in that regard is refused.

— A. Jauro, JSC. PDP v INEC (2023) – SC/CV/501/2023

Was this dictum helpful?

NO COST WHERE BOTH PARTIES SUCCEED IN PART

Both sides have failed or succeeded in parts on this appeal and it is fair to desist from making any order as to costs.

— Coker JSC. Shell Bp Petroleum Dev. Co. v. Jammal Engineering (Nigeria) Limited (1974)

Was this dictum helpful?

COSTS FOLLOW EVENTS

Even though costs follow events,there shall be no order on costs.

— O. Ariwoola, JSC. African Intl. Bank Ltd. v Integrated Dimensional System (2012) – SC.278/2002

Was this dictum helpful?

FACTORS CONSIDERED IN AWARDING COST – LITIGATION

Speaking generally, costs as between party and party are given or awarded as an indemnity to the person entitled to them, usually a successful party at the conclusion of proceedings in a case, not as a bonus to him or imposed as a punishment to the losing party. REWANE v OKOTIE-EBOH (1960) SCNLR 461; UBN v SCPOK (NIG) LTD (1998) 12 NWLR 578; OGUNMOKUN v MILAD, OSUN STATE (1999) 3 NWLR (594) 261 at 287. In addition, in awarding costs, a Court is entitled to consider among other factors, the following: a) the summons fee b) duration of the case c) legal representation d) expenses incurred by the successful party in the ordinary course of prosecuting the case. e) The value or purchasing power of the Naira at the time of the award. See ONABANJO V EWETUGA (1993) 4 NWLR ( 2 8 8 ) 4 4 3 a t 4 6 0 ; DELTA STEEL CO. LTD v AMERICAN COMP. TECH. LTD (1999) 4 NWLR (597) 53 at 68.

— H.M. Ogunwumiju, JCA. First Bank v Oronsaye (2019) – CA/B/335/13

Was this dictum helpful?

SUCCESSFUL PARTY IS ENTITLED TO COST EXCEPT WHERE SPECIAL REASON IS SHOWN

A successful party is entitled to costs unless there are special reasons why he should be deprived of his entitlement. In making an award of costs, the Court must act judiciously and judicially. That is to say with correct and convincing reasons. See Per RHODES-VIVOUR, JSC in NNPC V. CLIFCO NIG. LTD (2011) LPELR-2022(SC) (P. 23, PARAS. D-A).

— U.M. Abba Aji, JSC. Cappa v NDIC (2021) – SC.147/2006

Was this dictum helpful?

AWARD OF COST SHOULD NOT BE ON SENTIMENT – MUST BE JUDICIAL AND JUDICIOUS

The award of costs involves a judicial discretion which must be exercised judicially and judiciously on fixed principles that is according to rules of reason and justice not according to private opinion. See Wurno v. VAC Ltd. (1956) I FSC 33 at 34. The exercise of such discretion must similarly not be affected by question of benevolence or sympathy. The award of costs is not meant to be a bonus to the successful party and should not be awarded on sentiment. See Universal Bank of Nigeria Ltd. v. Nwaokolo (1995) 11 Kings Law report (KLR) 919. Rewani v. Festus Okotie-Eboh (1960) 5 FSC 200 at 207. It follows therefore that the discretion of the court in awarding costs must be judicially and judiciously. It is an acceptable practice in law for appellate court not to interfere with the exercise of discretion by lower courts. In this regard appellate courts seldom interfere with the exercise of discretion in awards of costs except where such discretion is not exercised judicially and judiciously. See Nwaubani v. Golden Guinea Breweries Plc. (1995) 6 NWLR (Pt 400) page 191. A trial judge has discretion whether to award costs or not and also as regards the person by whom the costs are to be paid.

— Abdu Aboki JCA. ACB v Ajugwo (2011) – CA/E/66/2006

Was this dictum helpful?

Load More
No more related dictum to show.

Click the icons to like, follow, and join JPoetry

Facebook Twitter Whatsapp Telegram

External link(s)

BOOK: First 2-years as a Law Student: Experiences and Lessons.