A result is required
The court compares the relief sought, the outcome and final order.
Payment must be proved
A services agreement alone normally does not establish an incurred amount.
Costs must be reasonable
Complexity, work volume, duration and ordinary market levels are relevant.
Two distinct cost categories
| Category | Example | Main rule |
|---|---|---|
| Administration costs | Publications and practitioner remuneration | Bankruptcy Law Article 59 and funding rules |
| Separate-dispute costs | Lawyer, expert and travel | Commercial Procedure Code Articles 110 and 112 between the dispute parties |
| Court fee | Application or appeal | Allocated according to outcome and exemptions |
In its 2024 bankruptcy review, the Supreme Court explained that a creditor who unsuccessfully initiated a separate dispute remains the proper cost debtor. The fact that the dispute is part of bankruptcy does not justify shifting the burden to another person.
Application workflow
Identify the dispute parties
State who applied, who opposed and which party prevailed.
Build the payment trail
Connect the engagement, tasks, invoices, acts and bank records with the specific dispute.
Explain the work
List hearings, filings, volumes, expert issues and procedural steps and exclude unrelated services.
File on time
Apply to the court that resolved the dispute, serve the parties and address reasonableness objections.
Documents
- final order and appellate orders;
- legal-services agreement and assignment;
- service acts, invoices and payment records;
- dated work breakdown;
- travel and other expense evidence;
- proof of service.
FAQ
Are all costs paid from the estate?
No. Costs of a particular separate dispute may be recovered from its unsuccessful direct party.
Can costs be recovered from a public authority?
Yes where it lost the relevant dispute, subject to applicable procedural rules.
Is a services act sufficient?
Actual incurrence and connection with the dispute normally must also be proved.
Can the amount be reduced?
Yes where excessiveness is established or disproportion is apparent.
Official sources
- Commercial Procedure Code Article 110
- Article 112
- Bankruptcy Law Article 59
- Supreme Court 2024 bankruptcy review
Related guides: creditor funding and court-fee refunds.
Need to assess recoverable costs in a dispute?
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