PRACTICE DIRECTION
PART 47 - PRACTICE DIRECTION ABOUT COSTS
See also Civil Procedure Rules
See also Court Service Forms
DIRECTIONS RELATING TO PART 47
PROCEDURE FOR DETAILED ASSESSMENT OF COSTS AND DEFAULT PROVISIONS
SECTION I - GENERAL RULES ABOUT DETAILED ASSESSMENT
RULE 47.1 TIME WHEN ASSESSMENT MAY BE CARRIED OUT
1.1
- For the purposes of this rule, proceedings are concluded when the court has finally determined the matters in issue in the claim, whether or not there is an appeal.
- For the purposes of this rule, the making of an award of provisional damages under Part 41 will be treated as a final determination of the matters in issue.
- A party who is served with a notice of commencement (see paragraph 2.3 below) may apply to a costs judge or a district judge to determine whether the party who served it is entitled to commence detailed assessment proceedings.
- On hearing such an application the orders which the court may make include: an order allowing the detailed assessment proceedings to continue, or an order setting aside the notice of commencement.
- A costs judge or a district judge may make an order allowing detailed assessment proceedings to be commenced where there is no realistic prospect of the claim continuing.
RULE 47.2 NO STAY OF DETAILED ASSESSMENT WHERE THERE IS AN APPEAL
1.2
- Rule 47.2 provides that detailed assessment is not stayed pending an appeal unless the court so orders.
- An application to stay the detailed assessment of costs pending an appeal may be made to the court whose order is being appealed or to the court who will hear the appeal.
RULE 47.3 POWERS OF AN AUTHORISED COURT OFFICER
1.3
- The court officers authorised by the Lord Chancellor to assess costs in the Supreme Court Costs Office and the Principal Registry of the Family Division are authorised to deal with claims for costs not exceeding £17,500 (excluding VAT) in the case of senior executive officers and £35,000 (excluding VAT) in the case of principal officers.
- Where the receiving party, paying party and any other party to the detailed assessment proceedings who has served points of dispute are agreed that the assessment should not be made by an authorised court officer, the receiving party should so inform the court when requesting a hearing date. The court will then list the hearing before a costs judge or a district judge.
- In any other case a party who objects to the assessment being made by an authorised court officer must make an application to the costs judge or district judge under Part 23 (General Rules about Applications for Court Orders) setting out the reasons for the objection and if sufficient reason is shown the court will direct that the bill be assessed by a costs judge or district judge.
Rule 47.4 Venue for detailed assessment proceedings
1.4 For the purposes of rule 47.4(1) the "appropriate office" means
- the district registry or county court in which the case was being dealt with when the judgment or order was made or the event occurred which gave rise to the right to assessment, or to which it has subsequently been transferred; or
- the Principal Registry of the Family Division if the costs in question are the costs of any proceedings which were being dealt with in that registry when the judgment or order was made or when the event occurred which gave rise to the right to assessment, or which have subsequently been transferred to that registry; or
- In the case of appeals from the Principal Registry of the Family Division, a District Registry or a county court in respect of family proceedings, the Principal Registry of the Family Division.
- in all other cases, the Supreme Court Costs Office.
1.5
- A direction under rule 47.4(2) or (3) specifying a particular court, registry or office as the appropriate office may be given on application or on the court's own initiative.
- Before making such a direction on its own initiative the court will give the parties the opportunity to make representations.
- Unless the Supreme Court Costs Office is the appropriate office for the purposes of Rule 47.4(1) an order directing that an assessment is to take place at the Supreme Court Costs Office will be made only if it is appropriate to do so having regard to the size of the bill of costs, the difficulty of the issues involved, the likely length of the hearing, the cost to the parties and any other relevant matter.
SECTION II - COSTS PAYABLE BY ONE PARTY TO ANOTHER -COMMENCEMENT OF DETAILED ASSESSMENT PROCEEDINGS
RULE 47.6 COMMENCEMENT OF DETAILED ASSESSMENT PROCEEDINGS
2.1 Form 2 of the Schedule of Costs Forms annexed to this Practice Direction is a model form bill of costs for detailed assessment. Further information about bills of costs is set out in Sections 2 and 3 of the Directions Relating to Part 43. 2.2 The receiving party must serve on the paying party and all other relevant persons the following documents:
- a notice of commencement;
- a copy of the bill of costs;
- copies of the fee notes of counsel and of any expert in respect of fees claimed in the bill;
- written evidence as to any other disbursement which is claimed and which exceeds £250;
- a statement giving the name and address for service of any person upon whom the receiving party intends to serve the notice of commencement.
2.3
- The notice of commencement must be in Form 5 of the Schedule of Costs Forms annexed to this Practice Direction.
- Before it is served it must be completed to show as separate items
- the total amount of the bill of costs as drawn;
- the additional amounts which will be payable by way of fixed costs and court fees if a default costs certificate is obtained.
- The fixed costs payable in respect of solicitors' charges on the issue of a default costs certificate are £80.
2.4
- This paragraph applies where the notice of commencement is to be served outside England and Wales.
- The date to be inserted in the notice of commencement for the paying party to send points of dispute is a date (not less than 21 days from the date of service of the notice) which must be calculated by reference to the Practice Direction supplementing Section III of Part 6 as if the notice were a claim form and as if the date to be inserted was the date for the filing of a defence.
2.5
- For the purposes of rule 47.6(2) a "relevant person" means:
- any person who has taken part in the proceedings which gave rise to the assessment and who is directly liable under an order for costs made against him;
- any person who has given to the receiving party notice in writing that he has a financial interest in the outcome of the assessment and wishes to be a party accordingly;
- any other person whom the court orders to be treated as such.
- Where a party is unsure whether a person is or is not a relevant person, that party may apply to the appropriate office for directions.
- The court will generally not make an order that the person in respect of whom the application is made will be treated as a relevant person, unless within a specified time he applies to the court to be joined as a party to the assessment proceedings in accordance with Part 19 (Addition and Substitution of Parties).
2.6
- This paragraph applies in cases in which the bill of costs is capable of being copied onto a computer disk.
- If, before the detailed assessment hearing, a paying party requests a disk copy of a bill to which this paragraph applies, the receiving party must supply him with a copy free of charge not more than 7 days after the date on which he received the request.
RULE 47.7 PERIOD FOR COMMENCING DETAILED ASSESSMENT PROCEEDINGS
2.7 The parties may agree under rule 2.11 (Time limits may be varied by parties) to extend or shorten the time specified by rule 47.7 for commencing the detailed assessment proceedings. 2.8 A party may apply to the appropriate office for an order under rule 3.1(2)(a) to extend or shorten that time. 2.9 Attention is drawn to rule 47.6(1). The detailed assessment proceedings are commenced by service of the documents referred to. 2.10 Permission to commence assessment proceedings out of time is not required. RULE 47.8 SANCTION FOR DELAY IN COMMENCING DETAILED ASSESSMENT PROCEEDINGS
2.11
- An application for an order under rule 47.8 must be made in writing and be issued in the appropriate office.
- The application notice must be served at least 7 days before the hearing.
RULE 47.9 POINTS OF DISPUTE AND CONSEQUENCES OF NOT SERVING
2.12 The parties may agree under rule 2.11 (Time limits may be varied by parties) to extend or shorten the time specified by rule 47.9 for service of points of dispute. A party may apply to the appropriate office for an order under rule 3.1(2)(a) to extend or shorten that time. 2.13 Points of dispute should be short and to the point and should follow as closely as possible Form 6 of the Schedule of Costs Forms annexed to this Practice Direction. 2.14 Points of dispute must-
- identify each item in the bill of costs which is disputed,
- in each case state concisely the nature and grounds of dispute,
- where practicable suggest a figure to be allowed for each item in respect of which a reduction is sought, and
- be signed by the party serving them or his solicitor.
2.15
- The normal period for serving points of dispute is 21 days after the date of service of the notice of commencement.
- Where a notice of commencement is served on a party outside England and Wales the period within which that party should serve points of dispute is to be calculated by reference to Section III of Part 6 as if the notice of commencement was a claim form and as if the period for serving points of dispute were the period for filing a defence.
2.16 A party who serves points of dispute on the receiving party must at the same time serve a copy on every other party to the detailed assessment proceedings, whose name and address for service appears on the statement served by the receiving party in accordance with paragraph 2.2(5) above. 2.17
- This paragraph applies in cases in which Points of Dispute are capable of being copied onto a computer disk.
- If, within 14 days of the receipt of the Points of Dispute, the receiving party requests a disk copy of them, the paying party must supply him with a copy free of charge not more than 7 days after the date on which he received the request.
RULE 47.10 PROCEDURE WHERE COSTS ARE AGREED
2.18 Where the parties have agreed terms as to the issue of a costs certificate (either interim or final) they should apply under rule 40.6 (Consent judgments and orders) for an order that a certificate be issued in terms set out in the application. Such an application may be dealt with by a court officer, who may issue the certificate. 2.19 Where the receiving party claims that the paying party has agreed to pay costs but that he will neither pay those costs nor join in a consent application under paragraph 2.18, the receiving party may apply under Part 23 (General Rules about Applications for Court Orders) for a certificate either interim or final to be issued. 2.20 An application under paragraph 2.19 must be supported by evidence and will be heard by a costs judge or a district judge. The respondent to the application must file and serve any evidence he relies on at least two days before the hearing date. 2.21 Nothing in rule 47.10 prevents parties who seek a judgment or order by consent from including in the draft a term that a party shall pay to another party a specified sum in respect of costs. 2.22
- The receiving party may discontinue the detailed assessment proceedings in accordance with Part 38 (Discontinuance).
- Where the receiving party discontinues the detailed assessment proceedings before a detailed assessment hearing has been requested, the paying party may apply to the appropriate office for an order about the costs of the detailed assessment proceedings.
- Where a detailed assessment hearing has been requested the receiving party may not discontinue unless the court gives permission.
- A bill of costs may be withdrawn by consent whether or not a detailed assessment hearing has been requested.
SECTION III - COSTS PAYABLE BY ONE PARTY TO ANOTHER - DEFAULT PROVISIONS
RULE 47.11 DEFAULT COSTS CERTIFICATE
3.1 A request for the issue of a default costs certificate must be made in Form 7 of the Schedule of Costs Forms annexed to this Practice Direction and must be signed by the receiving party or his solicitor. 3.2 The request must be filed at the appropriate office. 3.3 A default costs certificate will be in Form 9 or Form 10 of the Schedule of Costs Forms annexed to this Practice Direction. 3.4 Attention is drawn to Rules 40.3 (Drawing up and Filing of Judgments and Orders) and 40.4 (Service of Judgments and Orders) which apply to the preparation and service of a default costs certificate. The receiving party will be treated as having permission to draw up a default costs certificate by virtue of this Practice Direction. 3.5 The issue of a default costs certificate does not prohibit, govern or affect any detailed assessment of the same costs which is made pursuant to the Legal Aid Act 1988. 3.6 An application for an order staying enforcement of a default costs certificate may be made either-
- to a costs judge or district judge of the court office which issued the certificate; or
- to the court (if different) which has general jurisdiction to enforce the certificate.
3.7 Proceedings for enforcement of default costs certificates may not be issued in the Supreme Court Costs Office. RULE 47.12 SETTING ASIDE DEFAULT COSTS CERTIFICATE
3.8
- A court officer may set aside a default costs certificate at the request of the receiving party under rule 47.12(3).
- A costs judge or a district judge will make any other order or give any directions under this rule.
3.9
- An application for an order under rule 47.12(2) to set aside or vary a default costs certificate must be supported by evidence.
- In deciding whether to set aside or vary a certificate under rule 47.12(2) the matters to which the court must have regard include whether the party seeking the order made the application promptly.
- As a general rule a default costs certificate will be set aside under rule 47.12(2) only if the applicant shows a good reason for the court to do so and if he files with his application a draft of the points of dispute he proposes to serve if his application is granted.
3.10
- Attention is drawn to rule 3.1(3) (which enables the court when making an order to make it subject to conditions) and to rule 44.3(8) (which enables the court to order a party whom it has ordered to pay costs to pay an amount on account before the costs are assessed).
- A costs judge or a district judge may exercise the power of the court to make an order under rule 44.3(8) although he did not make the order about costs which led to the issue of the default costs certificate.
3.11 If a default costs certificate is set aside the court will give directions for the management of the detailed assessment proceedings. SECTION IV COSTS PAYABLE BY ONE PARTY TO ANOTHER -
PROCEDURE WHERE POINTS OF DISPUTE ARE SERVEDRULE 47.13 OPTIONAL REPLY
4.1
- Where the receiving party wishes to serve a reply, he must also serve a copy on every other party to the detailed assessment proceedings. The time for doing so is within 21 days after service of the points of dispute.
- A reply means:-
- a separate document prepared by the receiving party; or
- his written comments added to the points of dispute.
- A reply must be signed by the party serving it or his solicitor.
RULE 47.14 DETAILED ASSESSMENT HEARING
4.2 The time for requesting a detailed assessment hearing is within 3 months of the expiry of the period for commencing detailed assessment proceedings. 4.3 The request for a detailed assessment hearing must be in form 8 of the Schedule of Costs Forms annexed to this Practice Direction. The request must be accompanied by:
- a copy of the notice of commencement of detailed assessment proceedings;
- a copy of the bill of costs;
- the document giving the right to detailed assessment (see paragraph 4.5 below);
- a copy of the points of dispute, annotated as necessary in order to show which items have been agreed and their value and to show which items remain in dispute and their value;
- as many copies of the points of dispute so annotated as there are persons who have served points of dispute;
- a copy of any replies served;
- a copy of all orders made by the court relating to the costs which are to be assessed;
- copies of the fee notes and other written evidence as served on the paying party in accordance with paragraph (2.2) above;
- where there is a dispute as to the receiving party's liability to pay costs to the solicitors who acted for the receiving party, any letter or other written information provided by the solicitor to his client explaining how the solicitor's charges are to be calculated;
- a statement signed by the receiving party or his solicitor giving the name, address for service, reference and telephone number and fax number, if any, of-
and giving an estimate of the length of time the detailed assessment hearing will take;
- the receiving party;
- the paying party;
- any other person who has served points of dispute or who has given notice to the receiving party under paragraph 2.5 above;
- where the application for a detailed assessment hearing is made by a party other than the receiving party, such of the documents set out in this paragraph as are in the possession of that party;
- where the court is to assess the costs of an assisted person-
- the legal aid certificate, any amendment certificates, any authorities and any certificates of discharge or revocation of legal aid;
- a certificate, in Form 4(2) of the Schedule of Costs Forms annexed to this Practice Direction;
- if the assisted person has a financial interest in the detailed assessment hearing and wishes to attend, the postal address of that person to which the court will send notice of any hearing;
- if the rates payable out of the legal aid fund are prescribed rates, a schedule to the bill of costs setting out all the items in the bill which are claimed against other parties calculated at the legal aid prescribed rates with or without any claim for enhancement: (further information as to this schedule is set out in Section IX (Legal aid costs at prescribed rates below));
- a copy of any default costs certificate in respect of costs claimed in the bill of costs.
4.4
- This paragraph applies to any document described in paragraph 4.3(i) above which the receiving party has filed in the appropriate office. The document must be the latest relevant version and in any event have been filed not more than 2 years before filing the request for a detailed assessment hearing.
- In respect of any documents to which this paragraph applies, the receiving party may, instead of filing a copy of it, specify in the request for a detailed assessment hearing the case number under which a copy of the document was previously filed.
4.5 "The document giving the right to detailed assessment" means such one or more of the following documents as are appropriate to the detailed assessment proceedings:
- a copy of the judgment or order of the court giving the right to detailed assessment;
- a copy of the notice served under rule 3.7 (sanctions for non-payment of certain fees) where a claim is struck out under that rule;
- a copy of the notice of acceptance where an offer to settle is accepted under Part 36 (Offers to settle and payments into court);
- a copy of the notice of discontinuance in a case which is discontinued under Part 38 (Discontinuance);
- a copy of the award made on an arbitration under any Act or pursuant to an agreement, where no court has made an order for the enforcement of the award;
- a copy of the order, award or determination of a statutorily constituted tribunal or body;
- in a case under the Sheriffs Act 1887, the sheriff's bill of fees and charges, unless a court order giving the right to detailed assessment has been made;
- a notice of revocation or discharge under Regulation 82 of the Civil Legal Aid (General) Regulations 1989.
- In the county courts certain Acts and Regulations provide for costs incurred in proceedings under those Acts and Regulations to be assessed in the county court if so ordered on application. Where such an application is made, a copy of the order.
4.6 On receipt of the request for a detailed assessment hearing the court will fix a date for the hearing, or, if the costs officer so decides, will give directions or fix a date for a preliminary appointment. 4.7
- The court will give at least 14 days notice of the time and place of the detailed assessment hearing to every person named in the statement referred to in paragraph 4.3(j) above.
- The court will when giving notice, give each person who has served points of dispute a copy of the points of dispute annotated by the receiving party in compliance with paragraph 4.3(d) above.
- Attention is drawn to rule 47.14(6)&(7): apart from the receiving party, only those who have served points of dispute may be heard on the detailed assessment unless the court gives permission, and only items specified in the points of dispute may be raised unless the court gives permission.
4.8
- If the receiving party does not file a request for a detailed assessment hearing within the prescribed time, the paying party may apply to the court to fix a time within which the receiving party must do so. The sanction, for failure to request a detailed assessment hearing within the time specified by the court, is that all or part of the costs may be disallowed (see rule 47.8(2)).
- Where the receiving party requests a detailed assessment hearing after the time specified in the rules but before the paying party has made an application to the court to specify a time, the only sanction which the court may impose is to disallow all or part of the interest which would otherwise be payable for the period of delay, unless the court exercises its powers under rule 44.14 (court's powers in relation to misconduct).
4.9 If either party wishes to make an application in the detailed assessment proceedings the provisions of Part 23 (General Rules about Applications for Court Orders) apply. 4.10
- This paragraph deals with the procedure to be adopted where a date has been given by the court for a detailed assessment hearing and
- the detailed assessment proceedings are settled; or
- a party to the detailed assessment proceedings wishes to apply to vary the date which the court has fixed; or
- the parties to the detailed assessment proceedings agree about changes they wish to make to any direction given for the management of the detailed assessment proceedings.
- If detailed assessment proceedings are settled, the receiving party must give notice of that fact to the court immediately, preferably by fax.
- A party who wishes to apply to vary a direction must do so in accordance with Part 23 (General Rules about Applications for Court Orders).
- If the parties agree about changes they wish to make to any direction given for the management of the detailed assessment proceedings-
- they must apply to the court for an order by consent; and
- they must file a draft of the directions sought and an agreed statement of the reasons why the variation is sought; and
- the court may make an order in the agreed terms or in other terms without a hearing, but it may direct that a hearing is to be listed.
4.11
- If a party wishes to vary his bill of costs, points of dispute or a reply, an amended or supplementary document must be filed with the court and copies of it must be served on all other relevant parties.
- Permission is not required to vary a bill of costs, points of dispute or a reply but the court may disallow the variation or permit it only upon conditions, including conditions as to the payment of any costs caused or wasted by the variation.
4.12 Unless the court directs otherwise the receiving party must file with the court the papers in support of the bill not less than 7 days before the date for the detailed assessment hearing and not more than 14 days before that date. 4.13 The papers to be filed in support of the bill and the order in which they are to be arranged, are as follows:
- instructions and briefs to counsel arranged in chronological order together with all advices, opinions and drafts received in response to such instructions;
- reports and opinions of medical and other experts arranged in chronological order;
- correspondence files and attendance notes;
- any other relevant papers;
- in detailed assessment proceedings to which rule 48.9 (Conditional Fees) applies, a copy of the conditional fee agreements;
- in detailed assessment proceedings in proceedings which commenced before 26 April 1999, a full set of any relevant pleadings which have been served by the parties but not filed at court.
4.14 Once the detailed assessment hearing has ended it is the responsibility of the legal representative appearing for the receiving party or, as the case may be, the receiving party in person to remove the papers filed in support of the bill. SECTION V INTERIM COSTS CERTIFICATE AND FINAL COSTS CERTIFICATE
RULE 47.15 POWER TO ISSUE AN INTERIM CERTIFICATE
5.1
- A party wishing to apply for an interim certificate may do so by making an application in accordance with Part 23 (General Rules about Applications for Court Orders).
- Attention is drawn to the fact that the court's power to issue an interim certificate arises only after the receiving party has filed a request for a detailed assessment hearing.
RULE 47.16 FINAL COSTS CERTIFICATE
5.2 At the detailed assessment hearing the court will indicate any disallowance or reduction in the sums claimed in the bill of costs by making an appropriate note on the bill. 5.3 Where the bill of costs is in the form illustrated in Form 2 of the Schedule of Costs Forms annexed to this Practice Direction, the receiving party must, in order to complete the bill after the detailed assessment hearing, enter in the fourth and fifth columns of the bill, the correct figures agreed or allowed in respect of each item and must re-calculate the summary of the bill appropriately. 5.4 The completed bill of costs must be filed with the court no later than 14 days after the detailed assessment hearing. 5.5 At the same time as filing the completed bill of costs, the party whose bill it is must also produce receipted fee notes and receipted accounts in respect of all disbursements except those covered by a certificate in Form 4(4) in the Schedule of Costs Forms annexed to this Practice Direction. 5.6 No final costs certificate will be issued until all relevant court fees payable on the assessment of costs have been paid. 5.7 If the receiving party fails to file a completed bill in accordance with rule 47.16 the paying party may make an application under Part 23 (General Rules about Applications for Court Orders) seeking an appropriate order under rule 3.1 (The court's general powers of management). 5.8 A final costs certificate will show:
This provision is subject to any contrary provision made by the statutory provisions relating to legal aid.
- the amount of any costs which have been agreed between the parties or which have been allowed on detailed assessment;
- where applicable the amount agreed or allowed in respect of VAT on the costs agreed or allowed.
5.9 A final costs certificate will include disbursements in respect of the fees of counsel only if receipted fee notes or accounts in respect of those disbursements have been produced to the court and only to the extent indicated by those receipts. 5.10 Where the certificate relates to costs payable between parties a separate certificate will be issued for each party entitled to costs. 5.11 Model forms of an interim costs certificate (Form 11) and final costs certificates (Forms 12 and 13) are included in the Schedule of Costs Forms annexed to this Practice Direction. 5.12 An application for an order staying enforcement of a interim costs certificate or final costs certificate may be made either:
- to a costs judge or district judge of the court office which issued the certificate; or
- to the court (if different) which has general jurisdiction to enforce the certificate.
5.13 Proceedings for enforcement of interim costs certificates or final costs certificates may not be issued in the Supreme Court Costs Office. SECTION VI DETAILED ASSESSMENT PROCEDURE FOR COSTS OF AN ASSISTED PERSON PAYABLE OUT OF THE LEGAL AID FUND
RULE 47.17 DETAILED ASSESSMENT PROCEDURE WHERE COSTS ARE PAYABLE OUT OF THE LEGAL AID FUND
6.1 The provisions of this section apply where the court is to assess costs which are payable only out of the legal aid fund. Sections IV and IX apply in cases involving costs by another person as well as costs payable only out of the legal aid fund. 6.2 The time for requesting a detailed assessment of legal aid costs is within 3 months after the date when the right to detailed assessment arose. 6.3 The request for a detailed assessment of legal aid costs must be in Form 8 of the Schedule of Costs forms annexed to this Practice Direction. The request must be accompanied by:
- a copy of the bill of costs;
- the document giving the right to detailed assessment (for further information as to this document, see paragraph 4.5 above);
- a copy of all orders made by the court relating to the costs which are to be assessed;
- copies of any fee notes of counsel and any expert in respect of fees claimed in the bill;
- written evidence as to any other disbursement which is claimed and which exceeds £250;
- the legal aid certificates, any amendment certificates, any authorities and any certificates of discharge or revocation of legal aid;
- In the Supreme Court Costs Office the relevant papers in support of the bill as described in paragraph 4.13 above; in cases proceeding in District Registries and county courts this provision does not apply and the papers should only be lodged if requested by the costs officer.
- a statement signed by the solicitor giving his name, address for service reference, telephone number and fax number if any and, if the assisted person has a financial interest in the detailed assessment and wishes to attend, giving the postal address of that person, to which the court will send notice of any hearing:
6.4 Rule 47.17 provides that the court will hold a detailed assessment hearing if the assisted person has a financial interest in the detailed assessment and wishes to attend. The court may also hold a detailed assessment hearing in any other case, instead of provisionally assessing a bill of costs, where it considers that a hearing is necessary. Before deciding whether a hearing is necessary under this rule, the court may require the solicitor whose bill it is, to provide further information relating to the bill. 6.5 Where the court has provisionally assessed a bill of costs it will send to the solicitor a notice, in Form 14 in the Schedule of Costs Forms annexed to this practice direction, of the amount of costs which the court proposes to allow together with the bill itself. The legal representative should, if the provisional assessment is to be accepted, then complete the bill. 6.6 The court will fix a date for a detailed assessment hearing if the solicitor informs the court within 14 days after he receives the notice of the amount allowed on the provisional assessment that he wants the court to hold such a hearing. 6.7 The court will give at least 14 days notice of the time and place of the detailed assessment hearing to the solicitor and, if the assisted person has a financial interest in the detailed assessment and wishes to attend, to the assisted person. 6.8 If the solicitor whose bill it is, or any other party wishes to make an application in the detailed assessment proceedings, the provisions of Part 23 (General Rules about Applications for Court Orders) applies. 6.9 It is the responsibility of the legal representative to complete the bill by entering in the bill the correct figures allowed in respect of each item, recalculating the summary of the bill appropriately and completing the legal aid assessment certificate (Form 15). SECTION VII COSTS OF DETAILED ASSESSMENT PROCEEDINGS 47.18
LIABILITY FOR COSTS OF DETAILED ASSESSMENT PROCEEDINGS.
7.1 As a general rule the court will assess the receiving party's costs of the detailed assessment proceedings and add them to the bill of costs. 7.2 If the costs of the detailed assessment proceedings are awarded to the paying party, the court will either assess those costs by summary assessment or make an order for them to be decided by detailed assessment. 7.3 Attention is drawn to the fact that in deciding what order to make about the costs of detailed assessment proceedings the court must have regard to the conduct of all parties, the amount by which the bill of costs has been reduced and whether it was reasonable for a party to claim the costs of a particular item or to dispute that item. RULE 47.19 OFFERS TO SETTLE WITHOUT PREJUDICE SAVE AS TO THE COSTS OF THE DETAILED ASSESSMENT PROCEEDINGS.
7.4 Rule 47.19 allows the court to take into account offers to settle, without prejudice save as to the costs of detailed assessment proceedings, when deciding who is liable for the costs of those proceedings. The rule does not specify a time within which such an offer should be made. An offer made by the paying party should usually be made within 14 days after service of the notice of commencement on that party. If the offer is made by the receiving party it should normally be made within 14 days after the service of points of dispute by the paying party. Offers made after these periods are likely to be given less weight by the court in deciding what order as to costs to make unless there is good reason for the offer not being made until the later time. 7.5 Where an offer to settle is made it should specify whether or not it is intended to be inclusive of the cost of preparation of the bill, interest and VAT. The offer may include or exclude some or all of these items but the position must be made clear on the face of the offer so that the offeree is clear about the terms of the offer when it is being considered. Unless the offer states otherwise, the offer will be treated as being inclusive of all these items. 7.6 Where an offer to settle is accepted, an application may be made for a certificate in agreed terms, or the bill of costs may be withdrawn, in accordance with rule 47.10 (Procedure where costs are agreed). 7.7 Where the receiving party is an assisted person, an offer to settle without prejudice save as to the costs of the detailed assessment proceedings will not have the consequences specified under rule 47.19 unless the court so orders. SECTION VIII APPEAL AGAINST DECISIONS IN DETAILED ASSESSMENT PROCEEDINGS
RULE 47.23 DUTY TO SEEK REASONS
8.1 A party wishing to appeal must request written reasons for the decision in accordance with Rule 47.23 and obtain the court's permission in accordance with Rule 47.24 unless the court otherwise orders. The request must be made in writing and filed at the end of the detailed assessment hearing, or subsequently in accordance with Rule 47.23(2) and (3). A copy of the request for written reasons must at the same time be served on all other parties to the detailed assessment hearing. A request for written reasons made by one party will be treated as a request made by all parties. 8.2 Attention is drawn to the time limits for requesting written reasons. In the case of the receiving party this is 14 days after the detailed assessment hearing (ie. when the completed bill of costs is filed). In the case of the paying party it is within 7 days after the detailed assessment hearing. 8.3 A request for written reasons must clearly identify the particular parts of the decision for which reasons are requested. 8.4 Before it gives written reasons the court may require the party seeking reasons to file a note of the decision in question and of the reasons which the court gave for it at the hearing. 8.5 Where a party requests written reasons the court may refuse the request. Such a refusal will usually be made only where the reasons underlying the decision are sufficiently recorded on the bill itself or in a note of the hearing which has been approved by the court. 8.6 The court will usually direct that written reasons are not necessary where the decision to be appealed against was a case management decision rather than a decision on the substance of the assessment proceedings. 8.7 A case management decision is one which does not decide the merits of the assessment proceedings. Examples are a decision to allow or refuse an extension of time, to adjourn proceedings or to add a party to the proceedings. 8.8 Where the court exercises any of its general case management powers under Part 3 the decision will generally be a case management decision. 8.9 Where written reasons are given the court will serve a copy of them on every party to the detailed assessment proceedings. RULE 47.24 OBTAINING THE COURT'S PERMISSION TO APPEAL
8.10 The party may request permission to appeal by letter delivered to the court and copies to the other parties. The letter must correctly set out the title of the action and the court reference. It must also set out the basis upon which permission is sought. As a general rule the request should first be made to the judge who made the decision which is sought to be appealed. Where the same judge is unavailable, or states that he is unable to deal with the request for permission, the request may be made direct to the appellate court. 8.11 As a general rule the court will not rule upon a request for permission to appeal without first providing written reasons for the decision to which the request relates or without first dispensing with the need for written reasons. 8.12 Attention is drawn to the time limits for seeking permission to appeal ie. 14 days after receiving written reasons; or, if the court directs that no written reasons are required, within 7 days after service of that direction. 8.13 The time limit for seeking permission to appeal will be calculated without taking into account the day upon which the letter requesting permission was delivered to the court, the day upon which the party wishing to appeal received the court's reply to that letter or any day in between those days. (See rule 2.8(time)). 8.14 In considering an application for permission to appeal the court will take into account:
- whether the ground of appeal has a reasonable prospect of success;
- whether the costs of the appeal are likely to be disproportionate; this factor is particularly relevant where the appeal is as to quantum only;
- if the appeal is against a case management decision, whether an appeal at that stage in the proceedings is appropriate.
RULE 47.25 APPEAL PROCEDURE
8.15 The time for filing notice of appeal is set out at rule 47.25. Attention is drawn to the fact that permission is not required to appeal against the decision of an authorised court officer or in respect of a decision of a Costs Judge or District Judge against a legal representative in relation to misconduct or in respect of wasted costs. 8.16 A notice of appeal against the decision of a Costs Officer must be in Form 16 of the Schedule of Costs Forms annexed to this Practice Direction. The Notice must set out the grounds of appeal. 8.17
- If it is necessary to obtain the court's permission to appeal and the Costs Officer refuses to give permission, the party wishing to appeal must, before filing a notice of appeal, apply to the High Court Judge or Circuit Judge, as the case may be, on notice requesting permission.
- A copy of that notice must be served on all other parties who may be affected by the appeal.
- If the Judge who deals with the application grants permission to appeal, the order made will extend the time for appealing.
- The extended period will be as stated in the order, or, if no period is stated will be the period up to 7 days after the date of the Judge's decision to give permission to appeal.
8.18 Where a decision of a costs judge or district judge on an appeal from an authorised court officer is taken on further appeal to a High Court Judge or a Circuit Judge, the appellant must, before the hearing of the further appeal, file a note of the decision given by the costs judge or district judge. The note filed must be agreed (if possible) with the other parties to the appeal and must be approved by the costs judge or district judge. SECTION IX LEGAL AID COSTS AT PRESCRIBED RATES
9.1 This section applies to a bill of costs of an assisted person which is payable by another person where the costs which can be claimed out of the legal aid fund are restricted to legal aid prescribed rates (with or without enhancement). 9.2 Where this section applies, the solicitor of the assisted person must file a legal aid schedule in accordance with Paragraph 4.3(l) above. The schedule should follow as closely as possible Form 3 of the Schedule of Costs Forms annexed to this Practice Direction. 9.3 The schedule must set out by reference to the item numbers in the bill of costs, all the costs claimed as payable by another person, but the arithmetic in the schedule should claim those items at prescribed rates only (with or without any claim for enhancement). 9.4 Where there has been a change in the prescribed rates during the period covered by the bill of costs, the schedule (as opposed to the bill) should be divided into separate parts, so as to deal separately with each change of rate. The schedule must also be divided so as to correspond with any divisions in the bill of costs. 9.5 The detailed assessment of the legal aid schedule will take place immediately after the detailed assessment of the bill of costs. 9.6 Attention is drawn to the possibility that, on occasions, the court may decide to conduct the detailed assessment of the legal aid schedule separately from any detailed assessment of the bill of costs. This will occur, for example, where a default costs certificate is obtained as between the parties but that certificate is not set aside at the time of the detailed assessment pursuant to the Legal Aid Act 1988. 9.7 Where costs have been assessed at prescribed rates it is the responsibility of the legal representative to enter the correct figures allowed in respect of each item and to recalculate the summary of the legal aid schedule referred to in paragraph 9.2 above.
Return to the Practice Directions Index