LEGAL PRINCIPLE: CIVIL PROCEDURE — Costs — Award — Discretionary Power — Basis for Award
PRINCIPLE STATEMENT
Costs are not awarded as a punitive measure but to meet the legitimate expenses of the successful party; an appellate court will be wary to interfere with the trial court's discretion as to the amount of costs.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Layinka & Anor v. Makinde & Ors (2002) NLC-1341998(SC) at p. 13; Paras B–C.
"Costs are not awarded as a punitive measure against the losing party but for the purpose of meeting the legitimate expenses of the successful party either wholly or partially as the court may see fit. When costs are awarded on that basis, i.e. judicially and reasonably to compensate a successful party, an appellate court will be quite wary to interfere with the discretion of the court as to the amount of costs."
EXPLANATION / SCOPE
Costs are compensatory, not punitive. They aim to reimburse the successful party for legitimate expenses. The trial court has discretion in awarding costs. An appellate court will not lightly interfere with that discretion. Interference requires that the trial court acted on wrong principles or the award is manifestly excessive or inadequate. The principle recognises that trial courts are best placed to assess costs. The appellate court will defer unless the discretion was exercised arbitrarily. The rule promotes finality in cost awards. The losing party cannot challenge costs merely because they are substantial. The award must be judicially and reasonably made.
