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SECTION 4 |
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4.1 |
Earliest Time for Commencement |
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| (a) |
Except where a summary assessment is carried out by the court, costs payable
between the parties are not assessed until the conclusion of the proceedings out of which the
order for costs arises, unless the court expressly orders an earlier detailed assessment (CPR
47.1). A Costs Judge or District Judge may make an order allowing detailed assessment
proceedings to be commenced where there is no realistic prospect of the claim continuing (CPD
para 28.1).
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| (b) |
Similarly where costs are payable out of the Community Legal Services Fund,
detailed assessment should not be sought until the conclusion of the proceedings or until the
discharge of the LSC certificate.
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| (c) |
Costs payable to a solicitor by his client are assessed if and when an order for
detailed assessment is made (see further section 26 below).
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| (d) |
An appeal against an order for costs or an order for detailed assessment does not
by itself operate as a stay of those proceedings unless the court so orders (CPR 47.2). An
application for such a stay may be made either to the court whose order is being appealed or to
the appeal court.
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4.2 |
Latest Time for Commencement |
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| (a) |
Detailed assessment proceedings must be commenced within three months after
the judgment, order or event giving rise to the right to costs (CPR 47.7); in civil recovery
proceedings under the Proceeds of Crime Act 2002 the time limit is reduced to two months, see
further Section 32, below. The parties may agree between themselves to extend or shorten the
time specified by the rule for commencing detailed assessment proceedings. A party may
apply to the appropriate office (as to which, see para 8.1, below) for an order to extend or
shorten the period of three months, but permission is not required to commence detailed
assessment proceedings out of time.
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| (b) |
If the receiving party fails to commence detailed assessment proceedings within
the period specified by the rule, or by order of the court, the paying party may apply for an order
under CPR 47.8(1) requiring the receiving party to commence the proceedings within a specified
time. The court may direct that unless the receiving party does commence the detailed
assessment proceedings within the time specified by the court, all or part of the costs will be
disallowed.
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| (c) |
Where the receiving party commences proceedings for detailed assessment out
of time but the paying party has not made an application under CPR 47.8(1), the court may
disallow all or part of the interest otherwise payable to the receiving party but the court will not
impose any other sanction unless there has been misconduct (CPR 47.8(3)).
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4.3 |
Serving a Notice of Commencement |
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| (a) |
Detailed assessment proceedings in respect of an order for costs between the
parties are commenced by the receiving party serving on the paying party a notice of
commencement in Form N252 and a copy of the bill of costs. The notice of commencement
must be completed to show the total amount of costs claimed in the bill and the extra sum which
will be payable by way of fixed costs and court fees if a default costs certificate is obtained
(CPR 47.6).
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| (b) |
The notice of commencement must be served on the paying party and on any
other relevant persons, ie,
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| (i) |
any person who has taken part in the proceedings which gave rise to the assessment and
who is directly liable under an order for costs made against him;
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| (ii) |
any person who has given to the receiving party notice in writing that he has a financial
interest in the outcome of the assessment and wishes to be a party accordingly;
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| (iii) |
any other person whom the court orders to be treated as a relevant person (CPD para
32.10).
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4.4 |
Documents to Accompany the Notice of Commencement |
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| (a) |
The list of documents to be served together with a notice of commencement
depends upon whether or not the receiving party is seeking to recover an "additional liability",
as to which see Section 19, below.
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| (b) |
If the detailed assessment is in respect of costs without any additional liability,
the receiving party must serve, in addition to the notice of commencement and the bill of costs,
copies of the fee notes of counsel and of any expert, in respect of fees claimed in the bill and
written evidence as to any other disbursement claimed which exceeds £250, and a statement of
parties giving the name and address for service of any person upon whom the receiving party
intends to serve the notice of commencement (CPD para 32.3).
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| (c) |
If the detailed assessment is in respect of an additional liability only, the
receiving party must serve, in addition to the notice of commencement and bill of costs, the
relevant details of the additional liability and a statement of parties (CPD para 32.4).
(Paragraph 19.6 below sets out the relevant details of additional liability which must be given.)
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| (d) |
If the detailed assessment is in respect of both costs and an additional liability,
the receiving party must serve all the documents set out in (b) and (c) above.
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4.5 |
Procedure Where Costs are Agreed |
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If the paying party and the receiving party agree the amount of costs, either may apply for a
costs certificate (either interim or final) in the amount agreed (CPR 47.10 and, see further, para
17.9, below).
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4.6 |
Cases in Which Notices of Commencement are Unnecessary |
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| (a) |
In the following cases detailed assessment proceedings are commenced by the
filing in court of a request for a detailed assessment hearing:
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| (i) |
costs of a LSC funded client which are payable only out of the Community Legal
Service Fund (CPR 47.17 and see Form N258A).
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| (ii) |
Costs payable out of a fund other than the Community Legal Service Fund (CPR
47.17A and see Form N258B).
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| (iii) |
Costs to be assessed pursuant to an order under Part 3 of the Solicitors Act 1974Acts (CPR
48.8 and see Form N258C).
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| (b) |
In these cases there is no requirement to serve a notice of commencement on
any party and there is no entitlement to the issue of a default costs certificate in respect of the
assessment.
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