Legal Costs Guide
How to Challenge a Bill of Costs
A bill of costs should not be ignored. The correct response depends on whether the bill comes from an opponent after litigation or from your own solicitor. The deadlines and procedure are different.
Opponent Bills
Where an opponent serves a notice of commencement with a bill of costs, the paying party normally has 21 days to serve points of dispute. If that deadline is missed, the receiving party may request a default costs certificate for the full amount claimed.
What Points of Dispute Should Cover
Points of dispute should identify the challenged items and explain why the costs are unreasonable, disproportionate, unnecessary or irrecoverable. Common issues include hourly rates, excessive time, duplication, counsel fees, experts, funding costs and VAT.
The Detailed Assessment Timeline
The sequence usually runs: the receiving party serves a notice of commencement with the bill; points of dispute are due 21 days later; optional replies follow within 21 days of the points of dispute; and the receiving party must then file a request for an assessment hearing within three months of the expiry of the period for commencing detailed assessment proceedings. Missing a step has consequences on both sides, so diarise every date as soon as the notice arrives.
Provisional Assessment for Bills up to £75,000
Where the bill is £75,000 or less, the court normally carries out a provisional assessment on the papers without a hearing under CPR 47.15. Either party unhappy with the outcome can ask for an oral hearing within 21 days, but unless they improve their position by 20 per cent or more at that hearing, they will usually pay its costs. That 20 per cent rule makes realistic points of dispute and sensible offers especially important in smaller assessments.
Solicitor-Client Bills
If you are challenging your own solicitor's bill, the Solicitors Act 1974 may apply. Time limits are important, and the court will look closely at whether the bill is a statute bill, whether it has been paid and whether there are special circumstances.
The One-Fifth Rule
In a Solicitors Act assessment, section 70(9) creates a simple costs incentive: if the bill is reduced by one fifth or more, the solicitor normally pays the costs of the assessment; if it is reduced by less than one fifth, the client normally pays. Realistic advice on the likely level of reduction is therefore central to deciding whether an assessment is worth pursuing.
Settlement and Hearing Risk
Most costs disputes settle. A costs lawyer can advise on likely reductions, realistic offers and whether the cost of fighting a point is justified by the potential saving.
Frequently Asked Questions
What if the 21-day deadline has expired?
Act immediately. It may still be possible to agree an extension, apply to set aside a default costs certificate or seek relief, but delay makes the position harder.
Can every item in a bill be challenged?
A paying party can raise any proper objection, but weak blanket disputes are rarely effective. Good points of dispute focus on the items that are likely to move the assessed figure.
Do I have to pay the bill while I challenge it?
For an opponent’s bill, payment is governed by the costs order and any interim costs certificate. For your own solicitor’s bill, paying it does not necessarily prevent an assessment, but payment starts a stricter clock under the Solicitors Act and can require special circumstances, so take advice before paying a disputed bill.
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