Class actions and group litigation, otherwise known as collective proceedings, are a legal process that enables multiple individuals with similar claims to pursue a case collectively against one or more defendants. This mechanism is particularly useful where a single wrongful act or omission has allegedly caused comparable losses to a large group of people.

In the UK, class actions and group litigation can provide an efficient and coordinated way to manage claims that share common issues of fact or law. Rather than each claimant bringing a separate case, the court can address these shared issues in one set of proceedings, saving time, cost, and judicial resources.

Typically, a single claimant can initiate the proceedings as a representative on behalf of others affected. This representative action defines the group or ‘class’, and unless an individual expressly opts out, their claim can proceed automatically within the class.

Class Action Costs

As with most forms of litigation, the costs of a class action are generally payable by the losing party, subject to the court’s discretion. Joint claim costs can be significant and are typically divided into two main categories: generic work (common to all claimants) and claimant-specific work (unique to each individual claim).

A wide range of legal fees and disbursements may arise in class actions, including:

• Legal team costs, such as solicitors’ and counsel’s fees for advice, preparation, and representation.
• Expert witness fees, for specialist input or the preparation of expert reports relating to particular claimants or issues.
• Court fees, covering the issue and ongoing administration of proceedings.
• Electronic disclosure platform costs, incurred in managing and reviewing large volumes of documents.
• Transcription fees, for producing official records of hearings.
• Hearing bundle preparation costs, including the creation of electronic bundles for use during proceedings.

Under CPR 46.6(2), costs in a class action mechanism must be properly apportioned between shared (generic) work and claimant-specific work. This ensures that common costs are not duplicated across every claimant. Instead, each party contributes a fair share of the generic costs, while costs incurred solely for the benefit of an individual claimant are borne entirely by that claimant.

Determining Costs in Class Actions and Group Litigation

Assessing costs in class actions and group litigation involves several key stages and considerations. In most cases, the detailed assessment process will be required to determine the level of costs payable by the losing party.

Outlined below is an overview of the detailed assessment process:

• Bill of costs – The party seeking recovery of costs (the receiving party) must prepare a comprehensive bill of costs, detailing all work undertaken and expenses incurred during the litigation. In class actions, this bill should be divided into sections to distinguish between generic costs (common to all claimants) and individual costs for each claimant.
• Notice of commencement – The receiving party then serves the bill of costs, along with a notice of commencement, on the paying party. This formally initiates the detailed assessment procedure.
• Points of dispute and replies – The paying party may challenge items within the bill by serving points of dispute, setting out any objections to specific charges or entries. The receiving party may then respond with points of reply to justify the claimed costs.
• Provisional assessment – Although less common in class actions and group litigation, provisional assessment may apply where the total costs claimed for a single claimant are below £75,000. In such cases, a costs judge reviews the papers and issues a court order determining the reasonable and proportionate amount payable – without the need for an attended hearing.
• Detailed assessment hearing – Where the total claimed costs exceed the provisional threshold (as is often the case in class actions) or either party requests an oral hearing, a detailed assessment hearing will take place before a costs judge. The judge considers the bill of costs, points of dispute and replies, and any supporting evidence or submissions from both parties.
• Costs Judge’s decision – The costs judge determines which costs are reasonable and proportionate, and may reduce or disallow items deemed excessive, duplicative, or unnecessary.
• Payment of assessed costs – Once the assessment is complete, the paying party must pay the assessed amount within the time specified by the court order.

Who is Liable for Paying Adverse Costs?

In cases where multiple collective actions are issued under a single claim form, all claimants are jointly and severally liable for any adverse costs that may arise. In proceedings conducted under a Group Litigation Order (GLO), claimants are severally liable for both common costs, which relate to legal and factual issues shared across the group, and individual costs, which are specific to their own claims.

In representative actions, typically only the representative claimant is responsible for adverse costs, although the court may, in certain circumstances, require other members of the class to pay or contribute as well.

How do Costs Lawyers Assist?

Costs lawyers play a vital role in ensuring that class actions and group litigation remain financially viable, proportionate, and compliant with the procedural rules. Their involvement can make the difference between a successful recovery and a costly dispute over costs.

Key ways costs lawyers assist include:

Costs budgeting and case planning – Costs lawyers help prepare detailed Precedent H budgets and attend Costs Case Management Conferences (CCMCs) to ensure budgets are realistic, proportionate, and strategically aligned with the litigation plan.

Apportionment and common costs management – In class actions and group litigation, distinguishing between common costs (those benefiting all claimants) and individual costs (specific to each group claim) is crucial. Costs lawyers structure and monitor this division throughout the case to simplify later recovery and ensure access to justice.

Costs schedules and bills – Following judgment or settlement, costs lawyers prepare detailed bills of costs and negotiate settlements or represent parties at detailed assessment. In GLO procedures, they manage the aggregation and apportionment of recoverable costs across multiple claimants.

How can ARC Costs assist?

At ARC Costs, we have a team of specialised Costs Draftsmen and Costs Lawyers. We are independent experts in assisting in both costs recovery and disputing claims for costs, dependent upon whether we are instructed by the Receiving or Paying Party.

We can assist with all stages of your claim from costs budgeting and costs management to the detailed assessment of your costs. We are well versed in group litigation order issues in relation to costs and often deal with both group actions and individual claims. We specialise in acting in respect of both Claimant’s costs and Defendant’s costs.

Should you require assistance on any part of your costs recovery, or should you simply have a query, please call us on 01204 397302, email us at info@arccosts.co.uk, or contact us via the live chat facility, below.

Follow Us