I apologise I tried to link but as a new member I couldn't insert the link to my post. Its part 38 of CPR.

Having a read could this only occur due to a dispute of costs ?

Dear All, I have a scenario here I would like to get your views on. Suppose in a county court X makes a claim against Y and in turn Y makes a counterclaim against X under Reference Z (I am assuming counter claims are under the same reference number) X now wishes to discontinue the claim against Y My question is simply, will the entire claim then discontinued under Reference Z including the counter claim If Z wishes to pursue the counter claim, will he need to file a new claim in the county court? X will be liable for Y costs - would there need to be a small claim made by Z to recover the costs? Many thanks