Basis for assessmentThe court - despite its best endeavours - has not summarily assessed the costs of the receiving party.

That means the costs, in default of agreement, will need to be the subject of a detailed assessment in place of the current taxation procedure.

The basis of the assessment will be standard costs or indemnity costs.

In order to gain indemnity costs, the receiving party must still generally point to some factor such as the abuse of the court's procedure or an extraneous motive for litigation but they may now also be awarded as a sanction.

On neither basis will the court allow costs which have been unreasonably incurred or which are unreasonable in amount.

These are the differences.-- On the standard basis the costs must be proportionate to the issues and doubts are resolved in favour of the paying party.-- The indemnity basis is more robust.

The costs must still be reasonable but proportionality is not required and doubts are resolved in favour of the receiving party.Factors to be taken into account in deciding the amount of costsIn addition to the seven pillars of wisdom, rule 44.5 of the Civil Procedure Rules 1998 (CPR) requires the court to have regard to the conduct of the parties and the efforts made to settle the dispute.

The receiving party must make sure of not being hit twice on the same grounds, once by the trial judge who made a reduced costs order and again when the court considers all the circumstances in the detailed assessment.Where, when and how? The general rules about detailed assessmentThe general rule remains that an order for assessment is required unless a costs order is deemed to arise such as, after a rule 3.7.

strike out.

Do not forget rule 44.3(8) - the court's new power to order a payment on account before the costs are assessed.-- Provisional taxations of inter partes costs have gone and are not replaced.-- Rule 47.2 - unless the court orders otherwise, an appeal does not stay the assessment procedure.-- Rule 47.6 - the assessment proceedings are begun by service of the bill (form 2 in the costs forms schedule to the costs practice direction is a specimen) with a prescribed notice of commencement (form 5 in the same schedule).

The court is not involved at this stage.-- The bill and prescribed notice should be served within three months of judgment, acceptance of a payment into court or whatever event has given rise to the right to costs.

But there is no equivalent to an application for leave to file a bill out of time.

The effect of rule 47.8 is to give the paying party the right to apply for an 'unless order' to compel the receiving party to get on with it or lose the costs.

The other sanctions against delay are disallowance of interest and the costs of the assessment procedure.-- There is a new procedure for serving detailed notice of points of dispute - rule 47.9 form 6 in the costs schedule contains examples of objections that are short and to the point.-- All the time limits can be enlarged by consent.

The bill and points of objection can be served on a disk.The default certificateThis provision is new.

It is the equivalent of a default judgment.

The receiving party can apply to the court for a default costs certificate (form 7) if the paying pa rty fails to serve points of objection within time.

If the paying party wishes to apply to set aside a default costs certificate that party must act promptly, show a good reason and serve a draft of the proposed points of dispute.

The court can order costs to be paid on account as a condition for setting aside the default certificate.Assessment hearingOnce the points of objection are served the receiving party may serve a reply.

The paying party has another chance to apply for a strike out order if the receiving party fails to apply for an assessment hearing (in form 8), usually within six months of the date of the judgment.

The costs practice direction specifies the documents that must be filed with the request for hearing and these include a copy of any conditional fee agreement.

Generally, there is little change from the current SCTO practice direction but the receiving party can now ask for a copy of any letter that explained to the paying party how the solicitor's costs would be calculated.

Unless the court permits otherwise only:-- the receiving party and the paying party who has served notice of dispute may be heard; and-- the items specified in the points of dispute may be raised.Once a request for an assessment hearing has been filed, the court has power to issue an interim costs certificate 'for such amount as it considers appropriate'.

Rule 47 sets out the procedure after the assessment hearing to obtain the final costs certificate (and see forms 11 to 13).

A request for a detailed inter-partes civil assessment hearing will attract a fee of £120 in the county court and £160 in the High Court and an application for a default costs certificate will attract a fee of £40 in both the county court and High Court.

In family proceedings the fee for requesting a hearing will be £80.

The 'taxing fee' of 7.5% of taxed costs has gone.After CalderbankAs a general rule, the court will summarily assess the receiving party's costs of the detailed assessment proceedings.

Produce an estimate of these costs at the end of the assessment hearing.

When deciding what order to make about the costs of the detailed assessment the court will have regard to the conduct of the parties and the other rule 44.3 criteria.

Rule 47.19 allows the court to take into account offers to settle without prejudice save as to the costs when deciding who shall be liable for the costs of the assessment.

There are these changes:-- The costs practice direction says the offer should be made within 14 days after the service of the points of dispute.

A later offer will be valid but carries less weight.-- Where the receiving party has legal aid, an offer to settle without prejudice save as to costs of the detailed assessment proceedings will not have the consequences specified under rule 47.19 unless the court so orders.Legal aid only assessmentThere is no change to the old practice.

A provisional assessment will be made of a legal aid only bill.

An assessment hearing will be given if the solicitor affected wants one because of dissatisfaction with the provisional assessment, or the assisted person has an interest in the assessment and wishes to attend it.AppealsA system of appeal is substituted for the review system.

There are two preliminary steps the aggrieved party must take:-- Rule 47.23 - the district judge's (or costs judge's) reasons for the decision must be obtained.

The notice of request shall identify the parts of the assessment that are questioned.-- Rule 47.24 - when the reasons are received, leave to appeal must be obtained fro m the district judge (or costs judge) or from the judge to whom the appeal lies.

Notice of appeal can then be filed and the appeal proceeds in the same manner as it did under the old rules.