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FACTORS CONSIDERED IN AWARDING COST – LITIGATION

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Dictum

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

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ASSESSING COSTS

Assessment of the amount allowed in terms of the award of costs is the responsibility of the Court who determines what reasonable costs in the circumstances are. And when the Court in exercise of its discretion orders the costs payable and does so without being capricious id est in the sense that it is ordered in honest exercise of his discretion.

– P.O. Elechi, JCA. Emori v. Egwu (2016) – CA/C/259/2013

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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

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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

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AWARD OF COST IS AT COURT’S DISCRETION

Mrs Eno Umo v Mrs Cecilia Udonwa (2012) LPELR-7857 (CA), this Court held as follows per Garba JCA: “On the issue of costs, ordinarily, the assessment and award of costs in a case are left at the discretion of the Court by the relevant rules. For our purposes in the present appeal, Order 31, Rule 6 of the High Court of Cross River State (Civil Procedure) Rules 1987, applicable at the time of suit, provides thus: “6. Subject to the provisions of any applicable law and these Rules, costs, both actual and incidental to all proceeding in the High Court, including the administration of estates and trusts, shall be at the discretion of the Judge, and the Judge shall have full power to determine by whom and to what extent the costs are to be paid.”

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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

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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)

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