Summary assessment of costs (Costs management and budgeting - Costs)- fs

Question 1

What is the general rule on when the court will make a summary assessment of costs?

Answer 1

After a fast track trial or any hearing lasting one day or less, the court will generally make a summary assessment of costs.

Question 2

What is a summary assessment

Answer 2

A process where the court decides the amount of legal costs to be paid by one party to another immediately at the end of the hearing, typically for fast track trials or hearings under one day.

Question 3

What document must be prepared in advance to enable a summary assessment of costs?

Answer 3

Form N260, which includes a breakdown of costs (e.g., letters, emails, telephone calls, attendance, estimated hearing time), accompanied by a statement of truth.

Question 4

What is the role of the statement of truth in Form N260?

Answer 4

It confirms compliance with the indemnity principle, affirming that the costs claimed do not exceed those actually incurred and payable.

Question 5

What happens if a party fails to submit Form N260 before a hearing eligible for summary assessment?

Answer 5

The judge cannot summarily assess costs, and the matter will be adjourned for detailed assessment at the conclusion of proceedings.

Question 6

What’s is a Detailed Assessment of Costs

Answer 6

A procedure used when costs cannot be summarily assessed, requiring a full review of cost items after proceedings conclude, usually involving the Senior Courts Costs Office or relevant Costs Judge.

Question 7

When are summarily assessed costs typically payable by the losing party?

Answer 7

Within 14 days of the court’s order, unless the court directs otherwise.

Question 8

What is the indemnity principle in the context of costs assessment?

Answer 8

A party cannot recover from the opponent more costs than it is liable to pay its own solicitor, ensuring fairness and preventing unjust enrichment.

Question 9

Why is it strategically important to be prepared for summary assessment of costs?

Answer 9

Because if you’re not prepared with Form N260, the judge cannot summarily assess costs, relieving pressure from your opponent and potentially weakening your position.

Question 10

When should Form N260 be prepared and submitted?

Answer 10

Before the hearing, as it includes estimated hearing time and is required for the judge to make an immediate costs order.

Question 10

What must be included at the back of Form N260?

Answer 10

A schedule of work done on documents, detailing preparation activities relevant to the hearing.