Answers to the most common questions about bills of costs, detailed assessment, costs budgeting and instructing TMC Legal.
A bill of costs is a formal document setting out the costs incurred by a party in litigation, prepared for detailed assessment by a costs judge. It itemises profit costs, counsel fees, disbursements and VAT in a format compliant with CPR PD 47 and the SCCO Guide.
Detailed assessment is the court process by which a costs judge examines and determines the amount of costs payable between parties. It takes place at the Senior Courts Costs Office (SCCO) or before a regional costs judge and is governed by CPR Part 47.
A costs lawyer is a regulated professional authorised by the Costs Lawyers Standards Board, with rights of audience in costs proceedings. A law costs draftsman is an unregulated practitioner who does not hold the same regulated status or rights of audience. All fee earners at TMC Legal are qualified Costs Lawyers or experienced costs draftsmen with specialist expertise.
From service of the notice of commencement, the paying party has 21 days to serve points of dispute. Hearings at the SCCO are typically listed several months after request. Many matters settle by negotiation before a hearing is required.
Points of dispute are the paying party’s formal written objections to items claimed in a bill of costs. They must comply with CPR PD 47 para 8.2 and identify each item disputed with brief reasons. The receiving party may then serve replies.
Replies are the receiving party’s formal written responses to points of dispute. They address each challenge, provide supporting argument and, where appropriate, cite relevant case law. Well-drafted replies significantly strengthen a party’s position in negotiation and at assessment.
Precedent H is the standard form costs budget required in most multi-track cases under CPR Part 3. Once approved or agreed at a costs and case management hearing, it typically caps recovery at detailed assessment unless there is a good reason to depart.
Under CPR 44.3(5), costs are proportionate if they bear a reasonable relationship to the sums in issue, complexity, importance and conduct. The test introduced by the 2013 Jackson reforms can result in significant reductions even to costs that were reasonably and necessarily incurred.
Standard turnaround is 5 to 7 working days from receipt of the complete file. Urgent instructions can be accommodated where possible — please contact us to discuss your deadlines.
TMC Legal handle costs in personal injury, clinical negligence, civil liberties and human rights, commercial litigation, housing, inquest costs recovery and actions against the police. Most instructions are multi-track, including group litigation and high-value Supreme Court matters.