LEGAL PRINCIPLE: CIVIL PROCEDURE — Costs — Exercise of Discretion — Principles Governing Award of Costs
PRINCIPLE STATEMENT
Costs follow the event. Costs are not punitive. The court's discretion must be exercised judicially and judiciously. A successful party should not be denied costs unless for good reasons, and a defeated party ought not to be damnified for no cause.
RATIO DECIDENDI (SOURCE)
Per Onu, JSC, in Union Bank of Nigeria Limited v. Nwaokolo (1995) NLC-2171991(SC) at pp. 25–26; Paras. D–A.
"Costs follow the event; it is not designed or meant to be a bonus to the successful party. While it is true that a successful party should not be denied costs unless for good reasons, a defeated party ought not to be damnified in costs for no cause or on flimsy, capricious and unfounded grounds. Costs are not awarded as punitive measures. The court's discretion as to costs must be exercised judicially and judiciously."
EXPLANATION / SCOPE
Costs follow the event. The successful party is entitled to costs. Costs are not punitive. The court has discretion. The principle applies to all civil proceedings. The court must act judicially. The rule promotes fairness. The defeated party should not be unduly penalised.