Budgeted Bill of Costs: 86.3% Recovery on Bill
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ARC Costs were recently instructed by a Defendant solicitor to provide a budgeted bill of costs. Our team were successful in recovering 86.3% of legal costs.
What is a budgeted bill of costs?
A budgeted Bill of Costs refers to a detailed statement that outlines the legal costs a party expects to incur in a civil case, often used in the context of cost budgeting in multi track cases. This toe of budget is approved by the Court. This procedure forms part of the costs management process and applies to civil litigation cases where costs are required to be controlled.
Here’s how it works:
Costs Budget:
In many multi-track civil cases, filing a Costs Budget is a requirement early in the case. A Precedent H Costs Budget estimates the costs for each stage of the litigation process, such as pre-trial preparation, disclosure, trial and Court fees etc. Parties can negotiate budgets using a Budget Discussion Report.
Costs Management Hearing:
The court will review the Costs Budget in a Costs Management Hearing, where it may approve or amend the figures. Once approved, the approved or agreed budget becomes the budgeted costs for the case.
Bill of Costs:
After the case concludes, the winning party submits a Bill of Costs, which details the actual costs incurred. If a Costs Budget was approved earlier, the Bill of Costs must show how the actual costs compare to the budgeted figures.
Budgeted Bill of Costs:
This is essentially the Bill of Costs that reflects the costs approved in the budget, allowing for some flexibility, but generally limiting recoverable costs to those within the approved budget. The court may penalise parties who exceed the budget without justification.
The budgeted Bill of Costs helps ensure that costs remain proportionate to the value and complexity of the case
Facts of the case
Solicitors were instructed to represent the Defendant in a claim alleging his unjust enrichment due to withdrawals from his late father’s bank account. This claim was brought by three brothers. The Defendant’s father had left a Will naming the brothers as beneficiaries of his residual estate, while the Defendant was not included.
Probate was granted, and during the material time, the Defendant, acting as a third party signatory, made several withdrawals from the Deceased’s bank accounts totalling £26,796.63. The Claimants initiated proceedings to recover this amount plus interest.
The Defendant’s Defence argued that the withdrawals were made with the Claimants’ agreement to cover various expenses related to the Deceased’s death and estate. Additionally, a final significant withdrawal was claimed to be a promised gift from the Deceased.
After the Defence was served, the Claimants demanded strict proof. The parties attempted to reach a settlement, but when it failed, the case was moved to the County Court. Following several procedural steps, including the submission of Part 18 questions and various applications, the case saw multiple hearings and stays.
The Court ordered the Claimants to pay the Multi-track Trial fee, failing which the claim would be struck out. Despite further applications and hearings, including an attempt by the Claimants to strike out the Defence, the Court generally ruled in favour of the Defendant.
The Claimants applied for relief from sanctions, which was allowed, but their application regarding the appointment of a joint expert was adjourned. Later, the Defendant was permitted to change his expert.
Negotiations continued, and the trial date was set. On the eve of the trial, the Claimants’ Counsel sought to be taken off record, leading to an emergency application to adjourn the trial. The Defendant countered with an application to strike out the claim, which was allowed by the Court. The Defendant was awarded costs on an indemnity basis.
Budgeted Bill of Costs
Costs incurred in the case were substantial and included costs for expert witnesses, Case Management Conference costs, Costs Management Conference costs, witness statements, interim applications and hearings, costs budgeting costs and costs of preparation of the bill of costs.
As costs were awarded on an indemnity basis, the applicability of any Costs Management Order was technically irrelevant given that pursuant to CPR 43.3(3), proportionality is not an issue.
The total budgeted bill of costs ultimately amounted to £81,107.00.
ARC Costs received instruction from the Defendant solicitors to assist in the Detailed Assessment process and assist in the recovery of legal costs. We therefore drafted the budgeted electronic bill of costs and were successful in recovering 86.4% of the costs listed within the bill, in less than 1 month after the Bill was served.
Why Choose ARC Costs?
At ARC Costs, our Costs Draftsman pride themselves on their average recovery of 72% of all Bills, achieved in the majority of cases within 1 month of service of the Bill of Costs upon the paying party.
In addition, our professional service provides as standard:
- Every Bill is drafted with a high degree of accuracy and is vetted by at least two senior members of staff;
- Bills are drafted within an SLA of 7-14 days dependant upon the case value (with higher value bills taking up to 14 days) working days as standard;
- The majority of Bills are negotiated within 1 month of service, and prior to Points of Dispute/Reply being required however, if necessary we can assist with settling of legal arguments if the matter is to proceed to assessment;
- Review of every Bill negotiation instruction at least once per week to ensure progression of the case;
- That an amicable approach is taken to Bill negotiations, and that the client is advised on every offer received as to the potential risks of rejecting any offer;
- That an advocate is made available for any detailed assessment hearing if required
- Fixed and prompt timescales for all litigious steps including issuing Part 8 proceedings, preparing Points of Reply, and lodging any Bill to assessment.
To find out more about how we can provide you with assistance, please get in touch with us at 01204 397302 or email one of the costs experts in our team at info@arccosts.co.uk. Alternatively, please use our free chat facility to speak to an expert directly regarding budgeted bills of costs.