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.
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.
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.
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