The parties may agree under rule 2.11 (Time limits may be varied by parties) to extend or shorten the time specified by rule 47.7 for commencing the detailed assessment proceedings.

A party may apply to the appropriate office for an order under rule 3.1(2)(a) to extend or shorten that time.

Attention is drawn to rule 47.6(1). The detailed assessment proceedings are commenced by service of the documents referred to.

Permission to commence assessment proceedings out of time is not required.

The parties may agree under rule 2.11 (Time limits may be varied by parties) to extend or shorten the time specified by rule 47.9 for service of points of dispute. A party may apply to the appropriate office for an order under rule 3.1(2)(a) to extend or shorten that time.

Points of dispute should be short and to the point and should follow as closely as possible Precedent G of the Schedule of Costs Precedents annexed to this Practice Direction.

Points of dispute must –

(1)	identify each item in the bill of costs which is disputed,

(2)	in each case, state concisely the nature and grounds of dispute,

(3)	where practicable suggest a figure to be allowed for each item in respect of which a reduction is sought, and

(4)	be signed by the party serving them or his solicitor.

A party who serves points of dispute on the receiving party must at the same time serve a copy on every other party to the detailed assessment proceedings, whose name and address for service appears on the statement served by the receiving party in accordance with paragraph 32.3 or 32.4 above.

Where the parties have agreed terms as to the issue of a costs certificate (either interim or final) they should apply under rule 40.6 (Consent judgments and orders) for an order that a certificate be issued in terms set out in the application. Such an application may be dealt with by a court officer, who may issue the certificate.

Where in the course of proceedings the receiving party claims that the paying party has agreed to pay costs but that he will neither pay those costs nor join in a consent application under paragraph 36.1, the receiving party may apply under Part 23 (General Rules about Applications for Court Orders) for a certificate either interim or final to be issued.

An application under paragraph 36.2 must be supported by evidence and will be heard by a costs judge or a district judge. The respondent to the application must file and serve any evidence he relies on at least two days before the hearing date.

Nothing in rule 47.10 prevents parties who seek a judgment or order by consent from including in the draft a term that a party shall pay to another party a specified sum in respect of costs.

The request must be filed at the appropriate office.

A default costs certificate will be in Form N255.

Attention is drawn to Rules 40.3 (Drawing up and Filing of Judgments and Orders) and 40.4 (Service of Judgments and Orders) which apply to the preparation and service of a default costs certificate. The receiving party will be treated as having permission to draw up a default costs certificate by virtue of this Practice Direction.

The issue of a default costs certificate does not prohibit, govern or affect any detailed assessment of the same costs which are payable out of the Community Legal Service Fund.

An application for an order staying enforcement of a default costs certificate may be made either –

(1)	to a costs judge or district judge of the court office which issued the certificate; or

(2)	to the court (if different) which has general jurisdiction to enforce the certificate.

Proceedings for enforcement of default costs certificates may not be issued in the Costs Office.

* The fixed costs payable in respect of solicitor’s charges on the issue of the default costs certificate are £80.

If a default costs certificate is set aside the court will give directions for the management of the detailed assessment proceedings.

The time for requesting a detailed assessment hearing is within 3 months of the expiry of the period for commencing detailed assessment proceedings.

The request for a detailed assessment hearing must be in Form N258. The request must be accompanied by:

(a)	a copy of the notice of commencement of detailed assessment proceedings;

(b)	a copy of the bill of costs,

(c)	the document giving the right to detailed assessment (see paragraph 40.4 below);

(d)	a copy of the points of dispute, annotated as necessary in order to show which items have been agreed and their value and to show which items remain in dispute and their value;

(e)	as many copies of the points of dispute so annotated as there are persons who have served points of dispute;

(f)	a copy of any replies served;

(g)	a copy of all orders made by the court relating to the costs which are to be assessed;

(h)	copies of the fee notes and other written evidence as served on the paying party in accordance with paragraph 32.3 above;

(i)	where there is a dispute as to the receiving party’s liability to pay costs to the solicitors who acted for the receiving party, any agreement, letter or other written information provided by the solicitor to his client explaining how the solicitor’s charges are to be calculated;

(j)

a statement signed by the receiving party or his solicitor giving the name, address for service, reference and telephone number and fax number, if any, of – (i)     the receiving party; (ii)     the paying party; (iii)     any other person who has served points of dispute or who has given notice to the receiving party under paragraph 32.10 (1) (b) above; and giving an estimate of the length of time the detailed assessment hearing will take;

(k)	where the application for a detailed assessment hearing is made by a party other than the receiving party, such of the documents set out in this paragraph as are in the possession of that party;

(l)

where the court is to assess the costs of an assisted person or LSC funded client – (i)     the legal aid certificate, LSC certificate and relevant amendment certificates, any authorities and any certificates of discharge or revocation; (ii)     a certificate, in Precedent F(3) of the Schedule of Costs Precedents; (iii)     if the assisted person has a financial interest in the detailed assessment hearing and wishes to attend, the postal address of that person to which the court will send notice of any hearing; (iv)     if the rates payable out of the LSC fund are prescribed rates, a schedule to the bill of costs setting out all the items in the bill which are claimed against other parties calculated at the legal aid prescribed rates with or without any claim for enhancement: (further information as to this schedule is set out in Section 48 of this Practice Direction); (v)     a copy of any default costs certificate in respect of costs claimed in the bill of costs.

‘The document giving the right to detailed assessment’ means such one or more of the following documents as are appropriate to the detailed assessment proceedings:

(a)	a copy of the judgment or order of the court giving the right to detailed assessment;

(b)	a copy of the notice served under rule 3.7 (sanctions for non-payment of certain fees) where a claim is struck out under that rule;

(c)	a copy of the notice of acceptance where an offer to settle is accepted under Part 36 (Offers to settle);

(d)	a copy of the notice of discontinuance in a case which is discontinued under Part 38 (Discontinuance);

(e)	a copy of the award made on an arbitration under any Act or pursuant to an agreement, where no court has made an order for the enforcement of the award;

(f)	a copy of the order, award or determination of a statutorily constituted tribunal or body;

(g)	in a case under the Sheriffs Act 1887, the sheriff’s bill of fees and charges, unless a court order giving the right to detailed assessment has been made;

(h)	a notice of revocation or discharge under Regulation 82 of the Civil Legal Aid (General) Regulations 1989.

(j)	In the county courts certain Acts and Regulations provide for costs incurred in proceedings under those Acts and Regulations to be assessed in the county court if so ordered on application. Where such an application is made, a copy of the order.

At the detailed assessment hearing the court will indicate any disallowance or reduction in the sums claimed in the bill of costs by making an appropriate note on the bill.

The receiving party must, in order to complete the bill after the detailed assessment hearing make clear the correct figures agreed or allowed in respect of each item and must re-calculate the summary of the bill appropriately.

The completed bill of costs must be filed with the court no later than 14 days after the detailed assessment hearing.

At the same time as filing the completed bill of costs, the party whose bill it is must also produce receipted fee notes and receipted accounts in respect of all disbursements except those covered by a certificate in Precedent F(5) in the Schedule of Costs Precedents annexed to this Practice Direction.

No final costs certificate will be issued until all relevant court fees payable on the assessment of costs have been paid.

If the receiving party fails to file a completed bill in accordance with rule 47.16 the paying party may make an application under Part 23 (General Rules about Applications for Court Orders) seeking an appropriate order under rule 3.1 (The court’s general powers of management).

A final costs certificate will show:

(a)	the amount of any costs which have been agreed between the parties or which have been allowed on detailed assessment;

(b)	where applicable the amount agreed or allowed in respect of VAT on the costs agreed or allowed.

This provision is subject to any contrary provision made by the statutory provisions relating to costs payable out of the Community Legal Service Fund.

A final costs certificate will include disbursements in respect of the fees of counsel only if receipted fee notes or accounts in respect of those disbursements have been produced to the court and only to the extent indicated by those receipts.

Where the certificate relates to costs payable between parties a separate certificate will be issued for each party entitled to costs.

Form N257 is a model form of interim costs certificate and Form N256 is a model form of final costs certificate.

An application for an order staying enforcement of an interim costs certificate or final costs certificate may be made either:

(1)	to a costs judge or district judge of the court office which issued the certificate; or

(2)	to the court (if different) which has general jurisdiction to enforce the certificate.

Proceedings for enforcement of interim costs certificates or final costs certificates may not be issued in the Costs Office.

The provisions of this section apply where the court is to assess costs which are payable only out of the community legal service fund. Paragraphs 39.1 to 40.16 and 49.1 to 49.8 apply in cases involving costs payable by another person as well as costs payable only out of the community legal service fund.

The time for requesting a detailed assessment under rule 47.17 is within 3 months after the date when the right to detailed assessment arose.

The request for a detailed assessment of costs must be in Form N258A. The request must be accompanied by:

(a)	a copy of the bill of costs;

(b)	the document giving the right to detailed assessment (for further information as to this document, see paragraph 40.4 above);

(c)	a copy of all orders made by the court relating to the costs which are to be assessed;

(d)	copies of any fee notes of counsel and any expert in respect of fees claimed in the bill;

(e)	written evidence as to any other disbursement which is claimed and which exceeds £250;

(f)	the legal aid certificates, LSC certificates, any relevant amendment certificates, any authorities and any certificates of discharge or revocation;

(g)	in the Costs Office the relevant papers in support of the bill as described in paragraph 40.12 above; in cases proceeding in district registries and county courts this provision does not apply and the papers should only be lodged if requested by the costs officer.

(h)	a statement signed by the solicitor giving his name, address for service, reference, telephone number, fax number and, if the assisted person has a financial interest in the detailed assessment and wishes to attend, giving the postal address of that person, to which the court will send notice of any hearing.

Rule 47.17A provides that the court will make a provisional assessment of a bill of costs payable out of a fund (other than the Community Legal Service Fund) unless it considers that a hearing is necessary. It also enables the court to direct under rule 47.17A(3) that the receiving party must serve a copy of the request for assessment and copies of the documents which accompany it, on any person who has a financial interest in the outcome of the assessment.

The request for a detailed assessment of costs out of the fund should be in Form N258B, be accompanied by the documents set out at paragraph 43.3(a) to (e) and (g) above and the following;

(a)	a statement signed by the receiving party giving his name, address for service, reference, telephone number, fax number and,

(b)	a statement of the postal address of any person who has a financial interest in the outcome of the assessment, to which the court may send notice of any hearing; and

(c)	in respect of each person stated to have such an interest if such person is a child or protected party, a statement to that effect.

As a general rule the court will assess the receiving party’s costs of the detailed assessment proceedings and add them to the bill of costs.

If the costs of the detailed assessment proceedings are awarded to the paying party, the court will either assess those costs by summary assessment or make an order for them to be decided by detailed assessment.

No party should file or serve a statement of costs of the detailed assessment proceedings unless the court orders him to do so.

Attention is drawn to the fact that in deciding what order to make about the costs of detailed assessment proceedings the court must have regard to the conduct of all parties, the amount by which the bill of costs has been reduced and whether it was reasonable for a party to claim the costs of a particular item or to dispute that item.

Rule 47.19 allows the court to take into account offers to settle, without prejudice save as to the costs of detailed assessment proceedings, when deciding who is liable for the costs of those proceedings. The rule does not specify a time within which such an offer should be made. An offer made by the paying party should usually be made within 14 days after service of the notice of commencement on that party. If the offer is made by the receiving party, it should normally be made within 14 days after the service of points of dispute by the paying party. Offers made after these periods are likely to be given less weight by the court in deciding what order as to costs to make unless there is good reason for the offer not being made until the later time.

Where an offer to settle is made it should specify whether or not it is intended to be inclusive of the cost of preparation of the bill, interest and value added tax (VAT). The offer may include or exclude some or all of these items but the position must be made clear on the face of the offer so that the offeree is clear about the terms of the offer when it is being considered. Unless the offer states otherwise, the offer will be treated as being inclusive of all these items.

Where an offer to settle is accepted, an application may be made for a certificate in agreed terms, or the bill of costs may be withdrawn, in accordance with rule 47.10 (Procedure where costs are agreed).

Where the receiving party is an assisted person or an LSC funded client, an offer to settle without prejudice save as to the costs of the detailed assessment proceedings will not have the consequences specified under rule 47.19 unless the court so orders.

This Section and the next Section of this Practice Direction relate only to appeals from authorised court officers in detailed assessment proceedings. All other appeals arising out of detailed assessment proceedings (and arising out of summary assessments) are dealt with in accordance with Part 52 and the Practice Direction which supplements that Part. The destination of appeals is dealt with in accordance with the Access to Justice Act 1999 (Destination of Appeals) Order 2000.

In respect of appeals from authorised court officers, there is no requirement to obtain permission, or to seek written reasons.

The appellant must file a notice which should be in Form N161 (an appellant’s notice).

The appeal will be heard by a costs judge or a district judge of the High Court, and is a re-hearing.

The appellant’s notice should, if possible, be accompanied by a suitable record of the judgment appealed against. Where reasons given for the decision have been officially recorded by the court an approved transcript of that record should accompany the notice. Photocopies will not be accepted for this purpose. Where there is no official record the following documents will be acceptable:

(1)	The officer’s comments written on the bill.

(2)	Advocates’ notes of the reasons agreed by the respondent if possible and approved by the authorised court officer.

When the appellant was unrepresented before the authorised court officer, it is the duty of any advocate for the respondent to make his own note of the reasons promptly available, free of charge to the appellant where there is no official record or if the court so directs. Where the appellant was represented before the authorised court officer, it is the duty of his/her own former advocate to make his/her notes available. The appellant should submit the note of the reasons to the costs judge or district judge hearing the appeal.

The appellant may not be able to obtain a suitable record of the authorised court officer’s decision within the time in which the appellant’s notice must be filed. In such cases, the appellant’s notice must still be completed to the best of the appellant’s ability. It may however be amended subsequently with the permission of the costs judge or district judge hearing the appeal.

This section applies to a bill of costs of an assisted person or LSC funded client which is payable by another person where the costs which can be claimed against the LSC are restricted to prescribed rates (with or without enhancement).

Where this section applies, the solicitor of the assisted person or LSC funded client must file a legal aid/ LSC schedule in accordance with Paragraph 40.2(l) above. The schedule should follow as closely as possible Precedent E of the Schedule of Costs Precedents annexed to this Practice Direction.

The schedule must set out by reference to the item numbers in the bill of costs, all the costs claimed as payable by another person, but the arithmetic in the schedule should claim those items at prescribed rates only (with or without any claim for enhancement).

Where there has been a change in the prescribed rates during the period covered by the bill of costs, the schedule (as opposed to the bill) should be divided into separate parts, so as to deal separately with each change of rate. The schedule must also be divided so as to correspond with any divisions in the bill of costs.

If the bill of costs contains additional columns setting out costs claimed against the LSC only, the schedule may be set out in a separate document or, alternatively, may be included in the additional columns of the bill.

The detailed assessment of the legal aid/ LSC schedule will take place immediately after the detailed assessment of the bill of costs.

Attention is drawn to the possibility that, on occasions, the court may decide to conduct the detailed assessment of the legal aid/ LSC schedule separately from any detailed assessment of the bill of costs. This will occur, for example, where a default costs certificate is obtained as between the parties but that certificate is not set aside at the time of the detailed assessment pursuant to the Legal Aid Act 1988^Acts or regulations thereunder.

Where costs have been assessed at prescribed rates it is the responsibility of the legal representative to enter the correct figures allowed in respect of each item and to recalculate the summary of the legal aid/ LSC schedule.

In this section –

‘the Act’ means the Proceeds of Crime Act 2002;

‘the Order in Council’ means the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005; and

‘the Regulations’ means the Proceeds of Crime Act 2002 (Legal Expenses in Civil Recovery Proceedings) Regulations 2005.

This section applies to the assessment of costs where the court has made a recovery order which provides for the payment by the trustee for civil recovery of a person’s reasonable legal costs in respect of civil recovery proceedings. Such an order may be made under section 266(8A) of the Act or article 177(10) of the Order in Council. The procedure for obtaining a recovery order is set out in the Act and Order in Council, together with the Civil Recovery Proceedings Practice Direction.

Where this section applies, costs are to be assessed in accordance with the procedure for detailed assessment under Part 47, subject to the modifications set out in Parts 4 and 5 of the Regulations.

The detailed assessment will normally be made by a costs judge, even if the costs are within the authorised amounts specified in paragraph 30.1(1). The appropriate office for the purpose of rule 47.4(1) is the Costs Office.

In detailed assessment proceedings to which this section applies –

(1)	the paying party is the trustee for civil recovery;

(2)	the receiving party is the person whose reasonable legal costs are payable pursuant to provision made in the recovery order under section 266(8A) of the Act or article 177(10) of the Order in Council; and

(3)	the relevant persons for the purpose of rule 47.6(2) include the enforcement authority or the appropriate officer as defined in paragraph 1.5 of the Practice Direction - Civil Recovery Proceedings in addition to the persons referred to in paragraph 32.10.

On commencing detailed assessment proceedings, the receiving party must, in addition to serving the documents listed in paragraph 32.3 on the paying party and all other relevant persons, serve a statement giving the date, amount and source of all interim payments which have been released in respect of any of those costs under Part 3 of the Regulations.

By virtue of regulation 13(2) of the Regulations, detailed assessment proceedings must be commenced not later than 2 months after the date of the recovery order, and a request for a detailed assessment hearing must be filed not later than 2 months after the expiry of the period for commencing the detailed assessment proceedings.

The documents which must accompany the request for a detailed assessment hearing shall include copies of all exclusions from property freezing orders or interim receiving orders made by the court for the purpose of enabling the receiving party to meet the costs which are to be assessed, and of every estimate of costs filed by the receiving party in support of an application for such an exclusion.

The receiving party’s costs will be assessed on the standard basis, subject to Part 5 of the Regulations (and in particular regulation 17, which specifies the hourly rates which may be allowed). Attention is also drawn to regulation 14, which provides that the amounts of any interim payments released in respect of the receiving party’s costs will be deducted from the costs allowed in accordance with Part 5 of the Regulations.