Legal Costs Guide
Cost Assessment
Cost assessment is the court process for deciding how much of one party's legal costs should be paid. The phrase is often used loosely, but the practical question is usually whether the case needs summary assessment, detailed assessment, points of dispute, negotiation or a hearing.
What Cost Assessment Means
In civil litigation, assessment of costs is how the court determines the amount payable when costs are not agreed. The court may assess costs summarily at or after a shorter hearing, or by the detailed assessment procedure where a bill of costs, points of dispute and a more formal assessment process are needed.
Summary Assessment vs Detailed Assessment
Summary assessment is usually a shorter exercise carried out by the judge who dealt with the hearing or application. Detailed assessment is more document-heavy and normally follows a costs order after proceedings, settlement or another stage where costs are to be assessed if not agreed. It usually starts with a bill of costs and notice of commencement.
Standard Basis and Indemnity Basis
The basis of assessment affects how the court approaches reasonableness, proportionality and doubt. On the standard basis, the court only allows proportionate costs and resolves doubt in favour of the paying party. On the indemnity basis, doubt about reasonableness is resolved in favour of the receiving party.
What a Costs Lawyer Reviews
A costs lawyer will usually review the order, the bill or schedule, any budget, offers, correspondence, hourly rates, time entries, counsel and expert fees, VAT, proportionality, conduct points and any deadline. The work may be for the receiving party claiming costs or the paying party challenging them.
When to Request Quotes
Ask for quotes as soon as there is a costs order, a notice of commencement, a bill of costs, a provisional assessment result, a detailed assessment hearing date or a settlement deadline. The quote request should identify the role needed: bill drafting, points of dispute, replies, negotiation, advice, hearing preparation or attendance.
Sources
Frequently Asked Questions
Is cost assessment the same as detailed assessment?
Not always. Detailed assessment is one form of cost assessment. Summary assessment is another. In practice, people often say cost assessment when they mean detailed assessment of a bill of costs under CPR Part 47.
Who carries out a cost assessment?
The court assesses costs, but costs lawyers often prepare the documents and arguments used in the assessment. They may draft bills, points of dispute, replies, offers and hearing notes, and may attend assessment hearings where appropriate.
What documents should I send for a cost assessment quote?
Send the costs order, bill or schedule of costs, notice of commencement if served, budget if relevant, points of dispute or replies if already drafted, offers, hearing date and the deadline you are working to.
Related Pages
Need quotes from costs lawyers?
Submit one request and compare responses from specialists who handle this type of legal costs work.
Get Quotes