Costs awareness

It is the experience of most of costs draftsmen that the costs system is not so much the least successful part of the Civil Procedure Rules but the least understood and accordingly, the most misapplied part of the rules.

We do not agree that an unsuccessful paying party can delay the settlement of costs for any length of time or in any way penalise the receiving party.

It is our experience that most receiving parties fail to make full use of those provisions in the rules which are there to assist them in recovering costs as soon as possible.

The first point to be borne in mind is that following a hearing and an award of costs, the receiving party may request the judge to order a payment on account of costs (r.44.3 (8)).

Should a receiving party want to speed up the assessment process by sending a breakdown of costs to the paying party this is, of course, open to them, but if speed is of the essence then a bill of costs should be drawn.

Once this has been served with a notice of commencement, the paying party has only 21 days to serve any points of dispute.

Failure to serve points of dispute within the specified time limit means that the receiving party may apply for a default certificate (r.

47.9 (4)) for the total amount, payable within 14 days.

If points of dispute are served the receiving party can request a hearing date and then an interim costs certificate (r.

47.15) also payable within 14 days.

The principle of costs between the parties and solicitor and client costs has always been an issue that will long be debated and argued, that is the whole point of detailed assessment.

The paying party in raising points of dispute is not being awkward or employing delaying tactics; that exercise is defined to reduce and limit the areas of disagreement.

Points not included in the points of dispute will not be considered at the detailed assessment hearing, so the paying party has little option but to raise all reasonable points in the first instance.

This should not increase costs for the receiving party since points raised unreasonably will increase the costs of the detailed assessment proceedings at the expense of the paying party.

Interest is payable on any judgment or order awarding costs or in accordance with CPR 44.12 so that the receiving party will benefit from delays in settling costs by the paying party.

Paul T.Carter, Secretary, Association of Law Costs Draftsmen