Assessed costs

Question 1

when will costs be assessed?

Answer 1

Costs will be assessed by the court where:
o The FRC doesn’t apply + parties haven’t agreed costs (i.e. MT claims); or
o A party has made a successful request for costs to be assessed where RCF would normally apply

Question 2

what are the assessment procedures?

Answer 2

o Summary assessment
o Detailed assessment

Question 3

what is the default position?

Answer 3

A detailed assessment will take place unless the order states otherwise, however there should be a summary assessment at hearings no longer than 1 day unless there is a good reason

Question 4

when should costs be paid once the order is made?

Answer 4

Costs should be paid within 14 days of an order being granted

Question 5

on what basis can costs be assessed?

Answer 5

standard or indemnity

Question 6

what costs can be recovered on the standard and indemnity basis?

Answer 6

in both cases, only costs which are reasonable incurred and reasonable in amount can be recovered

however, on the standard basis the costs must also be proportionate

Question 7

when will costs be proportionate?

Answer 7

Costs will be proportionate if they bear a reasonable relationship to:
 Sums in issue
 Value of non-monetary relief sought
 Complexity
 Additional work created by paying party’s conduct or vulnerability of a party/W
 Wider factors i.e. reputation, public importance

Question 8

if there is doubt, in whose favour is it resolved?

Answer 8

standard = paying party
indemnity = receiving party

Question 9

what are the Part 44 factors and when are they used?

Answer 9

Court considers these factors when deciding whether costs are reasonable:
 The conduct of parties and efforts made to try and resolve the dispute
 The value of the claim
 Importance of the matter to parties
 Complexity of the matter
 Skill, effort, knowledge and responsibility of those involved
 Time spent on the case
 Place and circumstance in which the work was done
 Receiving party’s last approved / agreed budget

Question 10

on what basis will costs be assessed if the order doesn’t specify the basis?

Answer 10

standard

Question 11

what is a summary assessment? what must be done ahead of a summary assessment?

Answer 11

a summary assessment is when costs are decided at the end of the hearing

a statement of costs must be f&s 24 hours before hearing

Question 12

explain the detailed assessment procedure

Answer 12

Within 3 months of judgment/order, the receiving party must serve on the paying party:
o Notice of Commencement of detailed assessment proceedings (DAP)
o Bill of costs
o Evidence (i.e. receipts).

If the bill is disputed, parties should try to reach an agreement. If they cannot:
1. Paying party serves points of dispute within 21 days
2. Receiving party has 21 days to file a reply.
3. Receiving party files a request for an assessment hearing within three months of the expiry of the period for commencing DAP:
 Costs less than £75k  costs officer undertakes a provisional assessment in the absence of parties, unless the court orders a detailed assessment hearing
 Costs over £75k  detailed assessment hearing. Court decided costs.

Question 13

what can a party do if they are unhappy with the provision assessment? what are the associated consequences?

Answer 13

If a party is unhappy with the provisional assessment, they can request an oral hearing within 21 days. If they fail to achieve an adjustment in their favour by at least 20%, they must pay costs of the hearing