What is the general rule regarding costs in litigation as per UCPR Rule 42.1?

Study for the New South Wales Civil Practice and Procedure Test. Engage with multiple choice questions, comprehensive explanations, and helpful insights. Ace your exam with confidence!

The general rule regarding costs in litigation, as stipulated in UCPR Rule 42.1, is that costs follow the event, which means they are generally awarded to the winning party to be paid by the losing party. This rule provides a framework that encourages parties to resolve their disputes without unnecessary delays, knowing that the party who prevails will not be left at a financial disadvantage due to the costs of litigation.

This principle serves as a deterrent against frivolous claims and fosters responsible behavior in how parties conduct their cases. It reflects a key tenet of civil procedure that aims to promote fairness and efficiency in the judicial process. The losing party bearing the costs of the litigation balances the financial implications inherent in initiating or defending a claim.

In contrast, the other options suggest scenarios that do not align with the core principle established by UCPR Rule 42.1. For example, the idea that costs are automatically awarded to the losing party does not take into consideration the nuances and discretion that may apply in certain situations. Similarly, while negotiation of costs is a possibility, it is not the default position prescribed by the rule. Lastly, the notion that costs are only awarded upon request overlooks the proactive nature of this rule, which generally assumes that costs will

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