ARC Costs were recently instructed by a solicitor to serve urgent replies to point of dispute and avoided a bill of costs being struck out under CPR 47.14.

The rules of CPR 47.14

CPR 47 is part of the Civil Procedure Rules in England and Wales and pertains specifically to the procedure around the “Detailed Assessment of Costs.” Rule 47.14 specifically deals with the requirements for lodging for assessment in good time, and CPR 47 as a whole (and supplementing Practice Direction 47) deals with the processes of detailed assessment, including the requirements for Points of Dispute and Replies, where a party intends to challenge the amount of costs being claimed by another party.

With regards to CPR 47.14 specifically, this states:

“(1) Where points of dispute are served in accordance with this Part, the receiving party must file a request for a detailed assessment hearing within 3 months of the expiry of the period for commencing detailed assessment proceedings as specified –

(a) in rule 47.7; or

(b) by any direction of the court.

(2) Where the receiving party fails to file a request in accordance with paragraph (1), the paying party may apply for an order requiring the receiving party to file the request within such time as the court may specify.

(3) On an application under paragraph (2), the court may direct that, unless the receiving party requests a detailed assessment hearing within the time specified by the court, all or part of the costs to which the receiving party would otherwise be entitled will be disallowed.

(4) If –

(a) the paying party has not made an application in accordance with paragraph (2); and

(b) the receiving party files a request for a detailed assessment hearing later than the period specified in paragraph (1),

the court may disallow all or part of the interest otherwise payable to the receiving party under –

(i) section 17 of the Judgments Act 1838; or

(ii) section 74 of the County Courts Act 1984,

but will not impose any other sanction except in accordance with rule 44.11 (powers in relation to misconduct).

The importance of CPR 47.14 is that, similar to CPR 47.7 in setting a 3 month timescale for serving a Bill of Costs, CPR 47.14 sets a 3 month timescale for lodging for a detailed assessment from date of service of the Bill of Costs, failing which it is open to the Paying Party to apply for sanctions.

It is important to note that automatic sanctions do not apply for defaulting on the 3 month deadline set out in CPR 47.7 or CPR 47.14, and therefore these timescales can be exceeded, even without agreement.  It is however, open to the Paying Party (subject to notice being given) for them to apply for an Unless Order, under which the claim for costs may be struck out if then Court ordered timescales are not met.

How ARC Costs Assisted in a Recent Case

A firm of Solicitors recently instructed ARC Costs to serve urgent replies to points of dispute and to lodge for assessment, where there was only 10 days to do so, successfully preventing a bill of costs from being struck out under CPR 47.14 and a consequential Unless Order that had been made.  

In the case, the Paying Party’s application for an order pursuant to CPR 47.14(2) required the receiving party to file a request for a detailed assessment hearing within three months.

The main proceedings had concluded with the Deputy District Judge dismissing the Claimant’s claim and ordering the Defendant’s costs to be paid by the Claimant. Following this, the Receiving Party served their bill of costs. Points of dispute were then served in response to the bill of costs, and Points of Reply had then been prepared in response.

It appears matters had then been left in abeyance, the parties not coming to any amicable resolution, and the Paying Party subsequently applied for an Unless Order to compel the Receiving Party to proceed to detailed assessment.  In addition, the Paying Party had subsequently entirely rewritten their Points of Dispute, and had submitted amended Points.

Under Practice Direction 47, paragraph 13.10

“(1) If a party wishes to vary that party’s 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.

(2) 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.”

ARC Costs were approached by the Solicitor after the paying party had already obtained the Unless Order, essentially forcing the Receiving Party to go to a detailed assessment as the time scale had expired and risked the bill of costs being struck out.

A Court Order was given that allowed 2 weeks to file for assessment.  In this time, amended Points of Reply necessarily needed to be prepared to defend the Bill of Costs, and so that they could be filed with the detailed assessment proceedings at the Senior Courts Costs Office (SCCO).

Our team at ARC Costs successfully managed to settle the Amended Points of Reply and file for assessment within the time limit and avoided the claim for costs being struck out.

How can ARC Costs Assist?

ARC Costs are an experienced and independent team of specialised Costs Draftsmen and Costs Lawyers. As independent experts, we can assist either Paying or Receiving parties in resolving costs disputes, and we are adept at preparing Costs Budgets and Bill of Costs for receiving parties, as well as providing legal costs negotiations services and preparing Points of Reply.

Similarly if instructed by the Paying Party, we are adept at settling Points of Dispute, and conducting negotiations to reduce your exposure to legal costs.

If you would like more information on any of our services or wish to speak to a member of our expert costs team about your case then please do not hesitate to contact us. Please call one of our independent experts at 01204 397302, or email one of our costs experts direct on info@arccosts.co.uk.

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