This article was written by Simone Garcia Solicitor at W & G Lawyers.
When a legal dispute ends, the question of who pays for it is rarely an afterthought. Court cases can be expensive, and the party who succeeds will often want to recover what the case has cost them. This is where a costs order comes in. Understanding how costs orders work — how they are made, how the amount is worked out, and what happens if they go unpaid — can make a real difference to anyone involved in a court or tribunal matter in Queensland.
What is a costs order?
A costs order is a decision by a court or tribunal requiring one party to pay another party’s legal expenses, such as solicitor fees and filing costs. It can be made at any stage of a case, not only at the end.
Importantly, a costs order is meant to compensate the party in whose favour it is made — not to punish the party who has to pay. The aim is to put the successful party back, at least in part, in the financial position they would have been in if the case had never been necessary.
Costs usually “follow the event”
The usual starting point is that costs “follow the event.” This means you can generally expect the court to order the unsuccessful party to pay the successful party’s costs. Win your case, and you will usually have a strong expectation of recovering costs; lose it, and you should be prepared to contribute to the other side’s expenses.
When costs don’t follow the event
The “follow the event” principle is a general rule, not an absolute one. A court has a broad discretion over costs, and how a party has behaved during the case can change the outcome. The court may order one party to pay some or all of the other party’s costs where that party has:
- Failed or refused to comply with the court’s procedural directions, pushing up the other side’s costs.
- Caused unnecessary delay.
- Refused to take advantage of available assistance.
- Made numerous unsupported allegations about the other party’s conduct.
- Abandoned applications without giving the other party proper notice.
- Made last-minute changes to its pleadings.
- Brought the case in a higher court when the amount in dispute did not justify it.
- Tried to rely on a large amount of irrelevant or inadmissible evidence.
- Engaged in unnecessarily long or time-consuming communications with the other party.
The common thread is simple: conduct that wastes time, drives up costs, or burdens the other side may be reflected in the costs order — regardless of who ultimately wins.
What about people who represent themselves?
A person who runs their own case, without a lawyer, will generally not be paid for the time they spend on it. Because they are not lawyers, the value of their time is not treated as a legal cost.
They can, however, recover their disbursements. A disbursement — literally, money taken out of a purse — is money properly spent during a case that is necessary to move it forward. Disbursements may include barristers’ fees, the cost of expert reports, filing fees, and witness expenses.
How are costs worked out?
A court may award costs in one of several ways:
- As a specific dollar amount;
- As an amount the parties agree on or, if they cannot agree, an amount that is formally “assessed”; or
- As an amount to be assessed.
Where the court does not fix a figure, the party owed the money can give the party who has to pay details of the costs claimed and how the amount was calculated, along with copies of any supporting documents. The party who has to pay can then choose to pay the amount claimed, or negotiate over it.
What if you can’t pay?
If you have been ordered to pay costs and cannot afford to, you are not without options. You can provide evidence of your financial situation and try to negotiate a repayment plan or a one-off lump-sum settlement with the other party. Starting a constructive conversation early is usually far better than letting the debt drift into enforcement.
How do you enforce a costs order?
A costs order is only worth something if it can be turned into actual payment. If a costs order goes unpaid, the party owed the money can start enforcement proceedings to recover it — which may include seizing property or redirecting income — within six years.
In practice, the amount usually needs to be fixed first (by agreement, by a specific order, or through assessment) before any recovery steps can be taken. Once the figure is settled, the range of tools available means an unpaid costs order is a genuine, recoverable debt — not a hollow result.
Applying to the court to recover the money
The Uniform Civil Procedure Rules 1999 (Qld) set out the different ways the party owed the money can recover an unpaid amount from the party who has to pay.
The party owed the money can apply to the court for a warrant for:
- Seizure and sale of property — the court’s sheriff or bailiff seizes property belonging to the party who has to pay and sells it, with the proceeds going towards the debt.
- Redirection of a debt — where someone else owes money to the party who has to pay, that third party is required to pay it to the party owed the money instead.
- Redirection from a financial institution — a bank or other financial institution is required to redirect money the paying party regularly receives so that it goes to the party owed the money.
- Redirection of earnings — the paying party’s employer is required to deduct a portion of their wages each pay and send it to the party owed the money.
At any time after a money order has been made, the party owed the money can also:
- Ask for a statement of financial position. The party who has to pay must complete and return this statement within 14 days of receiving it.
- Apply for an enforcement hearing if that statement is not returned within 14 days. This hearing is a way to get information from the party who has to pay to help recover the debt. The registrar at the court will set a hearing date and issue a summons requiring that party to attend.
- Seek an arrest warrant if the party who has to pay fails to attend the enforcement hearing, so that they can be brought before the court for the hearing.
How can W & G Lawyers assist?
- Advise you, before and during a case, on your likely costs exposure and how both parties’ conduct may affect a future costs order.
- Prepare and argue costs submissions to put your position to the court in the strongest light.
- Once an order is made, work out and itemise the costs claimed and negotiate the amount directly with the other party.
- Where agreement can’t be reached, guide your matter through formal costs assessment.
- If you’ve been ordered to pay and can’t afford to, help you gather your financial evidence and negotiate a realistic repayment plan or lump-sum settlement — reducing the risk of enforcement action against you.
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This article is general information only and does not constitute legal advice under Australian law. For advice specific to your situation, please contact W & G Lawyers. For further details, please click here to view our disclaimer.