THE SCCO COSTS GUIDE 2006

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THE SUPREME COURT
COSTS GUIDE
2006
TABLE OF CONTENTS

List of Costs Judges and Costs Officers
List of Regional Costs Judges
Foreword by the Right Honourable Sir Anthony Clarke, Master of the Rolls, Head of Civil Justice
Glossary

THIS GUIDE STATES THE GENERAL PRACTICE OF THE SCCO AS AT 4 AUGUST 2006

SECTION 1 INTRODUCTION
1.1	The work of the SCCO
1.2	Representation
1.3	Sitting Master
1.4	Office hours
1.5	SCCO Support Sections
1.6	The SCCO file
1.7	Referrals to the RCJ Citizens Advice Bureau
1.8	Contacting the SCCO by letter or fax
1.9	Contacting the SCCO by telephone
1.10	SCCO page on the Court Service Website
SECTION 2 -- ENTITLEMENT TO COSTS
2.1	The meaning of "Costs"
2.2	Liability to pay costs
2.3	Orders which the Court may make
2.4	Bases of assessment
2.5	Methods of assessment of costs
2.6	The Indemnity Principle
2.7	Duty to notify clients of adverse costs orders
2.8	Some special cases
2.9	Costs where money is payable by or to a child or patient
2.10	Costs of trustees and personal representatives
2.11	Mortgagees costs
2.12	Group Litigation Orders
2.13	Costs in the Companies Court
2.14	Costs in family proceedings
2.15	Success fees and insurance premiums
2.16	Costs in relation to pre commencement disclosure and orders for disclosure against a non party
2.17	Costs orders in favour of or against non parties
2.18	Costs following acceptance of an offer to settle
2.19	Costs in small claims
2.20	Costs in fast track cases
2.21	Costs following allocation and reallocation
2.22	Time for complying with orders for costs
2.23	VAT
SECTION 3 FORM AND LAYOUT OF BILLS
3.1	Essential ingredients
3.2	Dividing bills of costs into separate parts
3.3	Dividing each part into separate items
3.4	Model forms of bills of costs
3.5	Certificates in bills of costs
3.6	Disk copies of bills
SECTION 4 COMMENCEMENT OF DETAILED ASSESSMENT PROCEEDINGS
4.1	Earliest time for commencement
4.2	Latest time for commencement
4.3	Serving a notice of commencement
4.4	Documents to accompany the notice of commencement
4.5	Procedure where costs are agreed
4.6	Cases in which notices of commencement are unnecessary
SECTION 5 POINTS OF DISPUTE AND REPLY
5.1	Time for Points of Dispute and consequences of not serving
5.2	Form and contents of Points of Dispute
5.3	Time limit for replies and their format
5.4	Where points of dispute challenge success fees
SECTION 6 -- OBTAINING A DEFAULT COSTS CERTIFICATE
6.1	When and how to apply
6.2	Cases in which the default costs certificate procedure does not apply
6.3	Form of default costs certificate
6.4	Effect of a default costs certificate
SECTION 7 APPLYING TO SET ASIDE A DEFAULT COSTS CERTIFICATE
7.1	Application by receiving party
7.2	Application by paying party
7.3	Orders and directions on set aside applications
SECTION 8 -- REQUESTS FOR A DETAILED ASSESSMENT HEARING
8.1	Forms of request
8.2	Detailed Assessment by the SCCO of costs of civil proceedings in London County Courts
8.3	Documents to accompany the request
8.4	Allocation to a Costs Officer or Costs Judge
8.5	Obtaining the date for the hearing
8.6	Application for an interim costs certificate
8.7	Lodging papers in support of the bill
8.8	Obtaining files from other courts
SECTION 9 THE DETAILED ASSESSMENT HEARING
9.1	The conduct of the hearing
9.2	The decisions made at the hearing
9.3	Relevance of estimates of costs previously given
9.4	Removing the papers in support
9.5	Hearing outside London
SECTION 10 PRODUCTION OF CONFIDENTIAL DOCUMENTS IN DETAILED ASSESSMENT HEARINGS
10.1	Receiving party's duty to lodge documents
10.2	Court's power to order production of documents
10.3	Deciding points of dispute in favour of the paying party
10.4	Deciding points of dispute in favour of the receiving party
10.5	Avoiding or minimising the expense and delay of production
SECTION 11 COSTS OF DETAILED ASSESSMENT PROCEEDINGS
11.1	Entitlement
11.2	Offers to settle: general provisions
11.3	Where an offer to settle is accepted
11.4	Where an offer to settle is not accepted
SECTION 12 -- FINAL COSTS CERTIFICATES
12.1	Completing the bill of costs
12.2	Failure to file completed bill of costs
12.3	Effect of final costs certificate
12.4	Order to stay enforcement
12.5	Enforcement of certificate
SECTION 13 -- APPEALS AGAINST DECISIONS IN DETAILED ASSESSMENT PROCEEDINGS
13.1	Routes of appeal
13.2	Seeking permission to appeal
13.3	Time limits for appeals
13.4	Documentation on appeals
13.5	Conduct of the appeal
SECTION 14 CORRECTING ACCIDENTAL SLIPS OR OMISSIONS IN FINAL COSTS CERTIFICATES
14.1	The Slip Rule
14.2	Applications for amendment
SECTION 15 -- INTEREST ON COSTS
15.1	Entitlement to interest on costs
15.2	Effect on final costs certificates
SECTION 16 APPLICATIONS CONCERNING DELAY, MISCONDUCT OR WASTED COSTS
16.1	Sanction for delay in commencing detailed assessment proceedings
16.2	Misconduct or delay by litigants or legal representatives
16.3	Personal liability of legal representatives for costs -- wasted costs orders
16.4	Principles on which wasted costs orders are made
16.5	Procedural steps on applications for a Wasted Costs Order
16.6	Deciding whether to make a wasted costs order
SECTION 17 OTHER APPLICATIONS IN DETAILED ASSESSMENT PROCEEDINGS
17.1	Applications generally
17.2	Evidence in support of applications
17.3	Extension of time for commencing detailed assessment proceedings
17.4	Extensions of time for service of points of dispute
17.5	Extension of other time limits
17.6	Changing the date fixed for a detailed assessment hearing
17.7	Amending bills of costs, points of dispute or replies
17.8	Case management directions
17.9	Agreed costs certificates
17.10	Change of solicitor
17.11	Stay of detailed assessment proceedings
17.12	Stay of enforcement of costs certificates
17.13	Other applications
SECTION 18 -- CASES TRANSFERRED FROM OTHER COURTS
18.1	Assessment of costs awarded in the High Court and the County Courts
18.2	Assessment of costs awarded by other tribunals and bodies
SECTION 19 FUNDING ARRANGEMENTS
19.1	Introduction
19.2	Providing information about funding arrangements
SECTION 20 SUCCESS FEE DISPUTES BETWEEN LEGAL REPRESENTATIVE AND CLIENT
20.1	Compliance with Conditional Fee Agreement and Collective Conditional Fee Agreement Regulations
20.2	Documents to accompany the bill
20.3	Factors to be taken into account during assessment
20.4	Fixed success fees
20.5	Disputes between legal representatives and their clients
SECTION 21 COSTS ONLY PROCEEDINGS
21.1	Introduction
21.2	The application under CPR Part 8
21.3	Obtaining the order for costs
21.4	Conducting the detailed assessment proceedings
SECTION 22 -- LITIGANTS IN PERSON
22.1	Introduction
22.2	Costs recoverable by litigants in person
22.3	Procedure on detailed assessment
22.4	Calculation of charges for time spent by a litigant in person preparing the case
22.5	Calculation of disbursements
SECTION 23 -- COURT OF PROTECTION CASES
23.1	Introduction
23.2	Orders and directions as to costs
23.3	Agreed costs
23.4	Fixed costs
23.5	Commencing detailed assessment
23.6	Bill format
23.7	Authorities to assess costs
23.8	The detailed assessment
23.9	Solicitors and other professional persons carrying out Receiver's work
23.10	Non-professional receivers
23.11	General management work
23.12	Costs of sale or purchase of property
23.13	Deceased patients
SECTION 24 -- LEGAL AID/LSC CASES
24.1	Introduction
24.2	Costs payable by another person as well as out of the Fund
24.3	Procedure where costs are payable by another person as well as out of the Fund
24.4	Costs of detailed assessment proceedings
24.5	Costs payable only out of the Community Legal Service Fund
24.6	Duty to inform counsel
24.7	Completing the bill and the legal aid assessment certificate
24.8	Agreement of between the parties costs
24.9	Costs Appeals
SECTION 25 -- COSTS ORDERS AGAINST LSC FUNDED CLIENTS AND/OR THE LSC
25.1	The Access to Justice Act 1999 and the Regulations
25.2	Orders which the court awarding costs may make
25.3	Costs against the LSC
25.4	Orders which a Costs Judge or District Judge may subsequently make
25.5	Form of application
25.6	The response by the LSC funded client
25.7	Effect of non compliance by the LSC funded client
25.8	Further procedure where a statement of resources by the LSC funded client is filed or is not required
25.9	Response by the Regional Director of the LSC
25.10	Costs of application
25.11	Statements of resources
25.12	Specimen forms of order
SECTION 26 -- APPLICATIONS UNDER THE Solicitors Act 1974^Acts
26.1	Introduction
26.2	Detailed assessment as of right or on terms
26.3	The forms to use
26.4	Commencing the application
26.5	The hearing of the application
26.6	The costs of the assessment
SECTION 27 -- COURT FEES PAYABLE IN THE SCCO
27.1	Introductory
27.2	Time for payment
27.3	Exemptions
27.4	Appeal fee
27.5	Fee for transcripts
27.6	Fee for providing copies
SECTION 28 -- REMUNERATION OF COURT APPOINTED OFFICE HOLDERS
28.1	Introduction
28.3	Reference to a Costs Judge for report
28.3	Applications for interim payments
SECTION 29 JUSTICES OF THE PEACE, JUSTICES' CLERKS AND GENERAL COMMISSIONERS OF INCOME TAX
29.1	Introduction
29.2	Time limit for proceedings in the SCCO
29.3	Form of application
29.4	Service on the Lord Chancellor
29.5	Written representations and replies
29.6	Case management directions
29.7	The determination
29.8	Costs of proceedings in the SCCO
29.9	Result of the determination
29.10	Appeals
SECTION 30 -- THE FINANCIAL SERVICES AND MARKETS ACT 2000
30.1	Orders for costs between the parties
30.2	Costs under the Financial Services and Markets Tribunal Legal Assistance Scheme
30.3	Claims for costs by solicitors
30.4	Claims for fees by an advocate
30.5	Interim payments, staged payments and hardship payments
30.6	Redetermination of costs
30.7	Appeals to a Costs Judge
30.8	Conduct of the appeal
30.9	Further appeals to a High Court Judge
30.10	Extension of time limits
SECTION 31 CRIMINAL FEE APPEALS
31.1	Introductory
31.2	The Criminal Costs Practice Direction
31.3	Nominated Masters
31.4	The Notice of Appeal
31.5	The Grounds of Appeal
31.6	Supplementary Grounds of Appeal
31.7	Lodging of documents in support of appeal
31.8	Appeals on paper only
31.9	The hearing of an appeal
31.10	Multi-handed appeals
31.11	Appeals by same advocate
31.12	Appeals by telephone or video link
31.13	Procedure subsequent to the appeal
31.14	Further appeal
31.15	Time limits
31.16	Divisional Court/Administrative Court Central Funds Assessments
SECTION 32 CIVIL RECOVERY PROCEEDINGS UNDER THE PROCEEDS OF CRIME ACT 2002
32.1	Introductory
32.2	Exclusions to meet reasonable legal expenses
32.3	Procedure on referrals relating to exclusions
32.4	Assessment of costs following a recovery order
SECTION 33 COSTS ORDERS MADE BY THE ADJUDICATOR TO HM LAND REGISTRY
33.1	Introductory
33.2	Assessments referred to the SCCO
33.3	Applications for directions
33.4	Request for a detailed assessment hearing
SECTION 34 SCCO CONSULTATION GROUPS
34.1	Costs Practitioners Group
34.2	SCCO Users Group

APPENDIX

Some standard forms and precedents

A-1      Bill of costs: Schedule of Costs Precedents, Precedent A

A-2      Certificates in bills: Schedule of Costs Precedents, Precedent F

A-3      Points of Dispute: Schedule of Costs Precedents, Precedent G

A-4      Standard orders made on applications to set aside default costs certificates

(a)   conditional order

(b)   unconditional order

(c)   dismissal of application

(d)   adjournment of application

A-5      Standard orders made in costs-only proceedings

(a)   order for detailed assessment

(b)   dismissal of application

A-6      Standard orders made against LSC funded clients
(a)   award of costs against a claimant who is an LSC funded client

(b)   order specifying amounts payable, for use by a Costs Judge

A-7      Claim form for remedies under Solicitors Act 1974^Acts: Schedule of Costs Precedents, Precedent J.
A-8      Standard order in claim under Solicitors Act 1974^Acts (order on client's application)
A-9      Notice of Appeal prescribed for criminal costs appeals.
A-10      Court of Protection short form bill of costs
A-11      Standard order for directions on a referral made in Civil Recovery Proceedings
A-12      Standard orders and directions in respect of costs awarded by the Adjudicator of
HM Land Registry

LIST OF COSTS JUDGES AND COSTS OFFICERS

Costs Judge Room

Chief Master Hurst
(Senior Costs Judge) 2.08

Master Wright 2.12

Master Rogers 2.24

Master O'Hare 2.17

Master Campbell 2.23

Master Simons 2.22

Master Gordon-Saker 2.03

Master Haworth 2.02

Costs Officer Room

Mr D P O'Riordan
(Principal Costs Officer) 2.07

Mr J Lambert
(Principal Costs Officer) 1.05

Mr C J Baker 1.09

Mr J Martin 1.17

Mr F Edwards 1.12

Miss C Bowstead
(Acting Court Manager) 2.18

Mr P Emery 1.07

Miss M Myers 1.19

Mrs I Sainthouse 2.25

Mrs A Alese 1.13

Mrs V Campbell 1.15

SCCO postal address

Clifford's Inn

Fetter Lane

London EC4A 1DQ

(DX 44454 Strand)

Telephone numbers

PA to Senior Costs Judge 020 7947 6618

Costs Judges Section 020 7947 7124

Costs Officers Section 020 7947 7121

Court of Protection 020 7947 6469

Issue Section 020 7947 6163

Certificates
Costs Judges' 020 7947 7124

Costs Officers' 020 7947 7121

Fax Numbers

Costs Judges Section 020 7947 6247

Costs Officers Section 020 7947 6344

General Office 020 7947 6344

FOREWORD

Dealing with the costs of a case can often be just as complicated as the substantive issues themselves. This, the third (and largest) edition of the Supreme Court Costs Office Guide has been written by the Masters and Officers of the Supreme Court Costs Office who deal with the many complexities of costs issues on a daily basis. It does not seek to replace the rules set out in the Civil Procedure Rules and Practice Directions, but gives practical information and guidance for dealing with this area of law. As ever, like its predecessors, it will be an invaluable friend to anyone who uses it whether they are lawyers or litigants.

THE RIGHT HONOURABLE THE SIR ANTHONY CLARKE

MASTER OF THE ROLLS, HEAD OF CIVIL JUSTICE

July 2006

GLOSSARY

Additional liability Items of costs which are recoverable in certain circumstances: that part of a success fee (defined below) under a conditional fee agreement (also defined below) which is recoverable from a paying party (defined below) and/or a reasonable sum in respect of a relevant insurance premium (also defined below) and/or an additional amount which is sometimes recoverable in respect of "self insurance" notionally incurred by a litigant whose case is funded by a trade union or similar body. These three forms of additional liability are the items about which the paying party should have received a notice of funding (defined below).

Applications clerk The clerk to whom all papers and enquiries should be directed concerning the issue of claim forms and application notices: the applications clerk's office is currently located in Room 2.13.

Appropriate office The office in which a request for a detailed assessment hearing should be filed: it is the County Court Office or District Registry for the court in which the order for costs was made or, in all other cases, the Supreme Court Costs Office (SCCO). Where the SCCO is the appropriate office for the request, it is also the appropriate office for any request or application made earlier in the detailed assessment proceedings, eg, a request for a default costs certificate, a request or application to set aside such a certificate and applications for extension of time and sanctions for delay.

Central Funds Money provided by Parliament out of which may be paid the costs of defendants in criminal cases in respect of which a "defendants costs order" has been made.

Clerk of Appeals The clerk to whom all papers and enquiries should be directed which relate to SCCO work concerning criminal fee appeals. The Clerk of Appeal's office is currently located in Room 2.13.

Conditional fee agreement An agreement with a legal representative which provides for the payment of fees or part of them only in specified circumstances. A party who wishes to recover a success fee payable under the agreement from his opponent should serve a notice of funding on the opponent at the outset of the claim.

Costs between the parties Costs payable by one litigant to another litigant under the terms of an order made by the court. The expression is used in order to distinguish these costs from "solicitor and client costs" (costs payable by a client to a solicitor under the terms of a contract made between them) and "LSC only costs" (costs payable by the Legal Services Commission to a solicitor or barrister).

Costs Judges Judges sitting in the SCCO (also known as Taxing Masters and as Masters of the SCCO). Costs Judges also act as District Judges of the Principal Registry of the Family Division, and as District Judges of the County Court when assessing costs from those courts.

Costs Officers Authorised court officers who assess most bills for sums not exceeding certain amounts specified from time to time. From their decisions, appeals lie as of right to the Costs Judges.

Costs-only proceedings The procedure to be followed where, before court proceedings are commenced, the parties to a dispute reach an agreement on all issues, including which party is to pay costs, but are unable to agree the amount of those costs.

Counsel One or more barristers acting for a litigant. Very senior barristers are awarded the title "Queen's Counsel".

CPD The Costs Practice Direction, supplementing the CPR (defined below).

CPR The Civil Procedure Rules which, supplemented by the CPD (defined above) govern the procedure to be followed in most civil cases brought in the SCCO. The text of the CPR and the CPD are set out in practitioner's books such as the White Book Service and the Civil Court Practice. Most of the relevant texts are also included on the SCCO page of the Court Service website (as to which, see para 1.10, below).

Detailed assessment The judicial process under which bills of costs are checked as to their reasonableness; the court may allow or disallow any items claimed in a bill or may vary any figures claimed in respect of them.

Determining officer The court officer in criminal cases (only) who first assesses the costs payable to a defendant out of Central Funds (defined above) or payable by the LSC to solicitors and counsel under criminal legal aid orders. Costs Judges have jurisdiction to hear appeals from the decisions of Determining Officers.

Disbursements Sums of money, eg, court fees, counsel's fees and witness expenses which are paid or payable by a "receiving party" (defined below) which cannot and do not include any element of profit for that party or for the solicitor acting for him. A special meaning is given to this term in the case of litigants in person (see para 22.2, below).

Form N252 and other N forms Court forms which are referred to in the CPD (defined above). Copies of the forms for use in the SCCO can be obtained from the SCCO itself or from the SCCO page of the Court Service Website (as to which, see para 1.10, below).

Funding arrangement An arrangement made by a litigant which gives rise to an additional liability (defined above).

Insurance premium The sum paid or payable by a litigant who has taken out an "after the event" insurance policy taken out in respect of particular litigation and covering against the risk of losing that litigation.

Litigant in person A party to any proceedings who does not have a solicitor or other legal representative duly authorised to represent him or her in those proceedings.

LSC The Legal Services Commission, which is the body set up by Parliament to provide financial help as to the costs of legal services provided to litigants in civil claims and defendants in criminal cases who come within certain eligibility criteria.

LSC funded client A litigant who has been granted financial help by the Legal Services Commission.

Notice of Funding A notice (usually in Form N251) by which one party warns another of any additional liability (defined above) which may later be recoverable.

Offer to settle An offer in writing made by one party to another in detailed assessment proceedings proposing the payment of a specific sum of money thereby avoiding the need for any further delay or expense. If the offer is not accepted and the costs in question are later subject to detailed assessment, neither party is allowed to reveal the existence of the offer to the Costs Judge or Costs Officer until the detailed assessment has been completed. The letter containing the offer should include the words "without prejudice save as to the costs of the detailed assessment" or words to that effect.

Part 23 application Applications made by any party which relate to existing or intended detailed assessment proceedings. The notice of application should be in Form N244 (as to which, see above).

Part 36 offer or payment An offer in writing made by one litigant to another during the proceedings preceding the detailed assessment proceedings, proposing to settle those proceedings on specified terms. After proceedings have started an offer by a defendant to settle a money claim should be supported by a payment into court of the specific sum offered.

Paying party The party to detailed assessment proceedings who is liable to pay the costs which are the subject of the assessment. The opposing party is referred to as the "receiving party" which is defined below.

Points of dispute A written statement made by the paying party identifying the areas of disagreement as to the costs to be assessed. In respect of each item of costs which is disputed the statement should outline the reason for disputing it and, where a reduction is sought, should suggest the reduced figure.

Profit costs Costs paid or payable in respect of work done by a solicitor which are not "disbursements" (defined above).

Provisional assessment An assessment of costs made without a hearing. Subsequently the court notifies the receiving party of the sum proposed to be allowed and requires the receiving party to so inform the court office within 14 days if he wishes a hearing to be convened.

RCJ The Royal Courts of Justice the postal address of which is Strand, London, WC2A 2LL.

Receiving party A party to detailed assessment proceedings who is entitled to recover from another party the costs which are the subject of the assessment. In the case of "costs between the parties" (defined above) the receiving party is the person in whose favour the court's order for costs was made or the solicitor or other legal representative acting for such a person. In the case of "solicitor and client costs" (which is defined below) the receiving party is the solicitor.

Regional Costs Judge A Regional Costs Judge is a District Judge who has been appointed to sit in both the County Court and the District Registry of the High Court to carry out detailed assessments in larger and more difficult cases.

SCCO The Supreme Court Costs Office the postal address of which is Clifford's Inn, Fetter Lane, London, EC4A 1DQ.

Sitting Master Each day the Master so nominated for that day deals with any applications in matters not yet assigned to other Masters and is also available to give guidance on points of practice to the Judges of the Supreme Court and other courts throughout the country and (via his clerk) to any litigants or lawyers seeking his help.

Solicitor and client costs See "costs between the parties" above.

Statement of truth A statement to be included in any claim form, application notice or witness statement which confirms that the facts stated therein are true. The statement of truth must be signed by the litigant, or his litigation friend or legal representative or witness as the case may be.

Success fees An additional fee which is payable in certain circumstances under the terms of a conditional fee agreement. The success fee must be expressed as a percentage of the other profit costs payable under the agreement.

Summary assessment The procedure by which the court, when making an award of costs, immediately calculates and specifies the sum of costs it allows.

Wasted costs order An order against a legal representative which disallows, or, as the case may be, orders the legal representative to meet, the whole or any part of costs found to have been incurred as a result of improper, unreasonable or negligent acts or omissions on the part of the legal representative or any consequential costs.

APPENDIX
Some standard forms and precedents

A-1		Bill of costs: Schedule of Costs Precedents, Precedent A
A-2		Certificates in bills: Schedule of Costs Precedents, Precedent F
A-3		Points of Dispute: Schedule of Costs Precedents, Precedent G
A-4		Standard orders made on applications to set aside default costs certificates
	(a)	conditional order
	(b)	unconditional order
	(c)	dismissal of application
	(d)	adjournment of application
A-5		Standard orders made in costs-only proceedings
	(a)	order for detailed assessment
	(b)	dismissal of application
A-6		Standard orders made against LSC funded clients
	(a)	award of costs against a claimant who is an LSC funded client
	(b)	order specifying amounts payable, for use by a Costs Judge
A-7		Claim form for remedies under Solicitors Act 1974^Acts: Schedule of Costs Precedents, Precedent J.
A-8		Standard order in claim under Solicitors Act 1974^Acts (order on client's application)
A-9		Notice of Appeal prescribed for criminal costs appeals.
A-10		Court of Protection short form bill of costs
A-11		Standard order for directions on a referral made in Civil Recovery Proceedings
A-12		Standard orders and directions in respect of costs awarded by the Adjudicator of HM Land Registry

FOREWORD

Dealing with the costs of a case can often be just as complicated as the substantive issues themselves. This, the third (and largest) edition of the Supreme Court Costs Office Guide has been written by the Masters and Officers of the Supreme Court Costs Office who deal with the many complexities of costs issues on a daily basis. It does not seek to replace the rules set out in the Civil Procedure Rules and Practice Directions, but gives practical information and guidance for dealing with this area of law. As ever, like its predecessors, it will be an invaluable friend to anyone who uses it whether they are lawyers or litigants.

	THE RIGHT HONOURABLE THE SIR ANTHONY CLARKE
	MASTER OF THE ROLLS, HEAD OF CIVIL JUSTICE

	July 2006

GLOSSARY
Additional liability	Items of costs which are recoverable in certain circumstances: that part of a success fee (defined below) under a conditional fee agreement (also defined below) which is recoverable from a paying party (defined below) and/or a reasonable sum in respect of a relevant insurance premium (also defined below) and/or an additional amount which is sometimes recoverable in respect of "self insurance" notionally incurred by a litigant whose case is funded by a trade union or similar body. These three forms of additional liability are the items about which the paying party should have received a notice of funding (defined below).
Applications clerk	The clerk to whom all papers and enquiries should be directed concerning the issue of claim forms and application notices: the applications clerk's office is currently located in Room 2.13.
Appropriate office	The office in which a request for a detailed assessment hearing should be filed: it is the County Court Office or District Registry for the court in which the order for costs was made or, in all other cases, the Supreme Court Costs Office (SCCO). Where the SCCO is the appropriate office for the request, it is also the appropriate office for any request or application made earlier in the detailed assessment proceedings, eg, a request for a default costs certificate, a request or application to set aside such a certificate and applications for extension of time and sanctions for delay.
Central Funds	Money provided by Parliament out of which may be paid the costs of defendants in criminal cases in respect of which a "defendants costs order" has been made.
Clerk of Appeals	The clerk to whom all papers and enquiries should be directed which relate to SCCO work concerning criminal fee appeals. The Clerk of Appeal's office is currently located in Room 2.13.
Conditional fee agreement	An agreement with a legal representative which provides for the payment of fees or part of them only in specified circumstances. A party who wishes to recover a success fee payable under the agreement from his opponent should serve a notice of funding on the opponent at the outset of the claim.
Costs between the parties	Costs payable by one litigant to another litigant under the terms of an order made by the court. The expression is used in order to distinguish these costs from "solicitor and client costs" (costs payable by a client to a solicitor under the terms of a contract made between them) and "LSC only costs" (costs payable by the Legal Services Commission to a solicitor or barrister).
Costs Judges	Judges sitting in the SCCO (also known as Taxing Masters and as Masters of the SCCO). Costs Judges also act as District Judges of the Principal Registry of the Family Division, and as District Judges of the County Court when assessing costs from those courts.
Costs Officers	Authorised court officers who assess most bills for sums not exceeding certain amounts specified from time to time. From their decisions, appeals lie as of right to the Costs Judges.
Costs-only proceedings	The procedure to be followed where, before court proceedings are commenced, the parties to a dispute reach an agreement on all issues, including which party is to pay costs, but are unable to agree the amount of those costs.
Counsel	One or more barristers acting for a litigant. Very senior barristers are awarded the title "Queen's Counsel".
CPD	The Costs Practice Direction, supplementing the CPR (defined below).
CPR	The Civil Procedure Rules which, supplemented by the CPD (defined above) govern the procedure to be followed in most civil cases brought in the SCCO. The text of the CPR and the CPD are set out in practitioner's books such as the White Book Service and the Civil Court Practice. Most of the relevant texts are also included on the SCCO page of the Court Service website (as to which, see para 1.10, below).
Detailed assessment	The judicial process under which bills of costs are checked as to their reasonableness; the court may allow or disallow any items claimed in a bill or may vary any figures claimed in respect of them.
Determining officer	The court officer in criminal cases (only) who first assesses the costs payable to a defendant out of Central Funds (defined above) or payable by the LSC to solicitors and counsel under criminal legal aid orders. Costs Judges have jurisdiction to hear appeals from the decisions of Determining Officers.
Disbursements	Sums of money, eg, court fees, counsel's fees and witness expenses which are paid or payable by a "receiving party" (defined below) which cannot and do not include any element of profit for that party or for the solicitor acting for him. A special meaning is given to this term in the case of litigants in person (see para 22.2, below).
Form N252 and other N forms	Court forms which are referred to in the CPD (defined above). Copies of the forms for use in the SCCO can be obtained from the SCCO itself or from the SCCO page of the Court Service Website (as to which, see para 1.10, below).
Funding arrangement	An arrangement made by a litigant which gives rise to an additional liability (defined above).
Insurance premium	The sum paid or payable by a litigant who has taken out an "after the event" insurance policy taken out in respect of particular litigation and covering against the risk of losing that litigation.
Litigant in person	A party to any proceedings who does not have a solicitor or other legal representative duly authorised to represent him or her in those proceedings.
LSC	The Legal Services Commission, which is the body set up by Parliament to provide financial help as to the costs of legal services provided to litigants in civil claims and defendants in criminal cases who come within certain eligibility criteria.
LSC funded client	A litigant who has been granted financial help by the Legal Services Commission.
Notice of Funding	A notice (usually in Form N251) by which one party warns another of any additional liability (defined above) which may later be recoverable.
Offer to settle	An offer in writing made by one party to another in detailed assessment proceedings proposing the payment of a specific sum of money thereby avoiding the need for any further delay or expense. If the offer is not accepted and the costs in question are later subject to detailed assessment, neither party is allowed to reveal the existence of the offer to the Costs Judge or Costs Officer until the detailed assessment has been completed. The letter containing the offer should include the words "without prejudice save as to the costs of the detailed assessment" or words to that effect.
Part 23 application	Applications made by any party which relate to existing or intended detailed assessment proceedings. The notice of application should be in Form N244 (as to which, see above).
Part 36 offer or payment	An offer in writing made by one litigant to another during the proceedings preceding the detailed assessment proceedings, proposing to settle those proceedings on specified terms. After proceedings have started an offer by a defendant to settle a money claim should be supported by a payment into court of the specific sum offered.
Paying party	The party to detailed assessment proceedings who is liable to pay the costs which are the subject of the assessment. The opposing party is referred to as the "receiving party" which is defined below.
Points of dispute	A written statement made by the paying party identifying the areas of disagreement as to the costs to be assessed. In respect of each item of costs which is disputed the statement should outline the reason for disputing it and, where a reduction is sought, should suggest the reduced figure.
Profit costs	Costs paid or payable in respect of work done by a solicitor which are not "disbursements" (defined above).
Provisional assessment	An assessment of costs made without a hearing. Subsequently the court notifies the receiving party of the sum proposed to be allowed and requires the receiving party to so inform the court office within 14 days if he wishes a hearing to be convened.
RCJ	The Royal Courts of Justice the postal address of which is Strand, London, WC2A 2LL.
Receiving party	A party to detailed assessment proceedings who is entitled to recover from another party the costs which are the subject of the assessment. In the case of "costs between the parties" (defined above) the receiving party is the person in whose favour the court's order for costs was made or the solicitor or other legal representative acting for such a person. In the case of "solicitor and client costs" (which is defined below) the receiving party is the solicitor.
Regional Costs Judge	A Regional Costs Judge is a District Judge who has been appointed to sit in both the County Court and the District Registry of the High Court to carry out detailed assessments in larger and more difficult cases.
SCCO	The Supreme Court Costs Office the postal address of which is Clifford's Inn, Fetter Lane, London, EC4A 1DQ.
Sitting Master	Each day the Master so nominated for that day deals with any applications in matters not yet assigned to other Masters and is also available to give guidance on points of practice to the Judges of the Supreme Court and other courts throughout the country and (via his clerk) to any litigants or lawyers seeking his help.
Solicitor and client costs	See "costs between the parties" above.
Statement of truth	A statement to be included in any claim form, application notice or witness statement which confirms that the facts stated therein are true. The statement of truth must be signed by the litigant, or his litigation friend or legal representative or witness as the case may be.
Success fees	An additional fee which is payable in certain circumstances under the terms of a conditional fee agreement. The success fee must be expressed as a percentage of the other profit costs payable under the agreement.
Summary assessment	The procedure by which the court, when making an award of costs, immediately calculates and specifies the sum of costs it allows.
Wasted costs order	An order against a legal representative which disallows, or, as the case may be, orders the legal representative to meet, the whole or any part of costs found to have been incurred as a result of improper, unreasonable or negligent acts or omissions on the part of the legal representative or any consequential costs.

THE SUPREME COURT

COSTS GUIDE

2006