NI Case Law Update on Costs in the County Court – Paul Dicks v First Central Underwriting [2025] NICty 6

A significant County Court decision has confirmed that plaintiffs who accept a lodgement are not automatically entitled to full county court scale costs.

In Paul Dicks v First Central Underwriting, District Judge Duncan held that the court retains discretion under Order 21 Rule 2(1) of the County Court Rules (NI) 1981 to determine what level of costs is reasonable following acceptance of a lodgement. The judge emphasised that there is no automatic entitlement to full scale costs, and that it is open to the court to award a lesser amount where appropriate. While reaffirming that the long-established practice derived from Judge Wells’ Cathcart decision — of allowing three-quarters of county court scale costs — remains a helpful and generally appropriate guide, Judge Duncan made clear that the precise figure will depend on the circumstances of each case.

The plaintiff, represented by JMK Solicitors, sought to overturn that convention, arguing that the judge only had the ability to award full scale costs. Judge Duncan rejected that argument, finding that the judge has discretion to award less than the full scale.

Key Point for Insurers:

This judgment confirms that the existing practice of limiting costs to three-quarters of scale on lodgement acceptance remains legally sound. The ruling provides important reassurance for insurers and defence solicitors that these existing costs practice remain valid.