Note: This file does not form part of the Ministry of Justice or CS sites. The files on those sites are the only official versions of the CPRs and related material. Please also note that the cross-references are not claimed to be comprehensive.

Click here to reload this page into top frame


SECTION 26  
26.1   Introduction
  
(a)   Application may be made under Section 70 of the Solicitors Act 1974Acts for an order for the detailed assessment of a solicitor's bill of costs. The application can relate to the whole bill, or can be limited to the profit costs only or to the disbursements only. Most such applications are made by the client or former client of the solicitor who delivered the bill. Such persons generally have no right to require the solicitor to make the application. In practice solicitors make the application against their client or former client only where they wish to escape the consequences of a remuneration certificate issued by the Law Society. Although, in other cases, the solicitors may have a right to apply under Section 70 they almost invariably bring simple debt proceedings instead and, if prevented from obtaining a default judgment, seek summary judgment for an amount "to be assessed" (see High Court Practice Form 15).
(b)   Application may also be made under Section 71 of the 1974 Act where a bill of costs is payable by a party who is not the client of the solicitors. For example beneficiaries under a will or a borrower whose mortgage or charge obliges him to pay the legal costs of the lender (usually a bank or a building society).
(c)   The application is heard by a Costs Judge. If an order for detailed assessment is made, that detailed assessment will also be heard by a Costs Judge.
26.2   Detailed Assessment as of Right or on Terms
  
(a)   If the application is made within one calendar month of receipt of the bill, the Costs Judge must order detailed assessment.
(b)   If the application is made more than one calendar month, but less than a year from receipt of the bill, the Costs Judge may impose conditions, for example, that the amount of the bill should be paid into court to abide the event.
(c)   No order will be made, except in special circumstances, if:
(i)   12 months have elapsed from the delivery of the bill or
(ii)   Judgment has been obtained for the recovery of the costs covered by the bill or
(iii)   The bill has been paid less than 12 months before the date upon which the application was issued.
(d)   If the bill has been paid more than 12 months before the date upon which the application was issued the Costs Judge has no power to order that bill be assessed.
26.3   The Forms to Use
  
(a)   Application for the detailed assessment of a solicitor's bill of costs is made by a claim form to which CPR Part 8 applies. The specimen form is set out in the Appendix, below, para A-7. This form is also used for other applications under the Act.
(b)   If an order for detailed assessment is made there are two standard forms of order: precedents L and M in the Schedule of Costs Precedents included in the Costs Practice Directionpdp-43 (see further, para 26.5, below)
26.4   Commencing the Application
  
(a)  
  Applicants must send or bring to the SCCO
  
(i)   Three copies of the claim form with draft order sought.
(ii)   A cheque for the fee made payable to H M Paymaster General (as to which, see para 27.1, below).
(iii)   The original bill(s) or copies of the original(s) which are certified by or on behalf of the applicants as being true and complete copies.
(b)   Once the payment of the fee has been processed, the application will be passed to the application clerk in Room 2.13, who will list it for hearing before a Costs Judge. The court will serve the application unless there are particular reasons why the applicant should serve it. The application will usually be listed for a short appointment (15 minutes). If the hearing is likely to exceed the allotted time it may be necessary to adjourn it to a new date with a realistic time estimate. This step may become due, for example, when evidence is filed in reply to the application.
(c)   In most cases, witness statement evidence is not required unless the application becomes contested, a certificate of special circumstances under Section 70(3) of the Act is sought or the Costs Judge so directs.
26.5   The Hearing of the Application
  
(a)   Where an application is made by a litigant in person, an order will not be made in the absence of the parties. The litigant in person must attend in order that the Costs Judge may explain the effect of Section 70(9) of the Act ("the one-fifth rule", as to which, see para 26.6 below).
(b)   If no-one attends on behalf of the respondent, the Costs Judge may make the order sought, conditional upon adequate proof of service of the application.
(c)   It is now common practice for a time-table to be incorporated into the order, based upon Rule 48.10 dealing with service of a breakdown of the bill, service of points of dispute, any reply and the request for a hearing date. A specimen order is included in the Appendix, below, para A-8.
(d)   The costs of the application will usually be treated as part of the costs of the detailed assessment and dealt with at the conclusion of the detailed assessment hearing.
(e)   The order is usually drawn up by the court, and a copy served on all parties. The Costs Judge may direct that the order be drawn up by the successful party. In that event, three copies of the order must be lodged with the clerk to the Costs Judge. Copies will then be served on the parties.
26.6   The Costs of the Assessment
  
(a)   Statutory provisions apply where costs are assessed under Sections 70 or 71 of the Solicitors Act 1974Acts. If the bill or bills are reduced by more than one fifth (excluding VAT) the solicitors will be ordered to pay the costs of the detailed assessment. If the bill or bills are reduced by less than one fifth the other party will be ordered to pay the costs of the detailed assessment. The Costs Judge may order otherwise if there are special circumstances.
(b)   If on a detailed assessment of non-contentious costs, the costs allowed are less than one half of the costs claimed, the Costs Judge will report those facts to the Council of the Law Society. The report will be addressed to The Law Society Consumer Complaints Service, Victoria Court, 8 Dormer Place, Royal Leamington Spa, Warwickshire CV32 5AE.