Detailed assessment hearings are a crucial stage in the costs recovery process, and represent the final step in the detailed assessment process, ensuring that parties obtain a fair and accurate determination of the costs payable following litigation. Whether proceeding in the County Court or the High Court (often the Senior Courts Costs Office), effective preparation can significantly influence both the conduct and the outcome of the assessment.

Proper preparation not only supports efficient case management, but also contributes to a more robust and defensible position during provisional and formal assessments.

What is a detailed assessment hearing?

Detailed assessment hearings are the end of the formal Court process of detailed assessment, in which a costs judge or district judge determines the amount of legal costs recoverable between parties following litigation. Unlike summary assessment, which is conducted immediately after a hearing, detailed assessment involves a line-by-line review of the Receiving Party’s bill of costs, together with any objections raised in the paying party’s points of dispute.

The hearing may take place either in the county court or the High Court (which in London is the Senior Courts Costs Office, or SCCO), depending on the level at which the underlying proceedings were issued or transferred. Its purpose is to ensure that the costs claimed are reasonable, proportionate, and properly incurred in accordance with the general rules and relevant practice directions.

During the hearing, both parties have the opportunity to make oral submissions, refer to supporting evidence, and address specific items challenged. The judge will then rule on each disputed entry before issuing a Final Costs Certificate recording the outcome of the assessment. This certificate confirms the final amount of costs payable and, in many cases, the costs of the assessment process itself.

How do I commence detailed assessment proceedings?

The detailed assessment process begins when the receiving party prepares and serves their bill of costs together with the notice of commencement, formally commencing detailed assessment proceedings. Under the general rules, these documents must be served on the paying party within the permitted period for commencing a detailed assessment, which will differ depending on the track, the type of proceedings, and any court-imposed variations.

Having taken this step, the paying party then has 21 days to serve points of dispute. Failure to do so allows the receiving party to seek a default costs certificate, which typically awards the full amount claimed, subject only to limited exceptions. Therefore, adhering to the standard timetable remains essential for both sides.

How do I request a detailed assessment hearing?

Once Points of Dispute and Replies are exchanged, if settlement can still not be reached, the next stage of the detailed assessment process depends on whether the case is suitable for provisional assessment or requires an assessment hearing.

• Provisional assessments typically apply to bills under £75,000 (excluding VAT and disbursements). In these cases, the court will conduct a paper-based evaluation.
• Larger or more complex cases will be listed for a full assessment hearing, requiring attendance and potentially the oral evidence of costs draftsmen.

Irrespective, Form N258 needs completing and lodging at Court (London Courts have assessments requested at the Senior Courts Costs Office) together with supporting documents which include:

– Bill of Costs with signed certificate;

– Disbursement vouchers;

– Points of Dispute;

– Points of Reply;

– Statement of Service for parties to proceedings;

– Copy of any retainer if the funding arrangement is challenged, and;

– N260 Statement of Costs for any provisional assessment.

These documents should be lodged by post, unless with the SCCO, in which case the CE-file service should be utilised to electronically file documents.

Preparing for a detailed assessment hearing

Effective preparation is key to a successful detailed assessment. Parties should ensure that their bill of costs and supporting documentation, including fee notes and relevant file material, are complete and clearly presented. Attention should be given to demonstrating that all work was necessary and proportionate.

It is also important to anticipate potential disputes and ensure compliance with procedural requirements, including service deadlines and any court directions. A well-prepared case allows the hearing to proceed efficiently and increases the likelihood of a favourable outcome of the assessment.

Generally the file of papers in support of the time claimed in the Bill of Costs should be readily prepared for inspection on assessment.  Practice Direction 47 Para 13.12 sets out the specific requirements for files of papers to be filed, which includes:

(i) instructions and briefs to Counsel arranged in chronological order with all advices, opinions and drafts received and response to such instructions – these documents are priviliged, and therefore ensure that if any detailed assessment bundle is being served on the other side, it does not include priviliged information such as Counsel’s advices, or file attendance notes;

(ii) reports and opinions of medical and other experts;

(iii) any other relevant papers – could include any disclosure provided, such as medical or employment records.  The assessing officer is unlikely to consider these in detail, but specific references may need to be made to these documents, or the Judge may wish to see the volume of documents considered;

(iv) a full set of any relevant statements of case – this would include all pleadings such as the Particulars of Claim and Defence, but should also include all Court Orders made that may need to be considered;

(v) correspondence, file notes and attendances notes – these should be in chronological order and should be easy to find to support any time claimed in the bill.  We would also recommend that any time records are included at the front of this section of the file of papers.

Whilst traditionally Courts would often request these documents in an organised paper format (in lever arch files), it is becoming more common that the assessing Costs Officer will want an electronic bundle, which is indexed, paginated and hyperlinked, so that documents can be referred to easily.  Different electronic bundles should be made for those to be filed at Court (containing confidential information) and served on the other side (excluding any confidential information).

Engaging a specialist costs draftsman or costs lawyer can be highly beneficial in detailed assessment proceedings. Costs draftsmen are experienced in preparing and reviewing bills of costs and ensuring compliance with the general rules. Their expertise often helps streamline the process, reduces the risk of challenges, and supports a more favourable outcome of the assessment. A costs lawyer can also partake in complex costs litigation and represent costs clients at hearings.

What evidence strengthens claims in detailed assessment proceedings?

A strong evidential foundation is essential to support any costs claim in detailed assessment proceedings. Detailed time records provide clarity on the work undertaken, demonstrating both necessity and reasonableness. Similarly, clearly itemised fee notes from counsel and experts lend credibility to the claimed amounts.

Evidence that illustrates the complexity or specific demands of the case, such as large volumes of disclosure, expert correspondence, or intricate legal issues, further justifies the costs claimed. Correspondence and procedural documents can also play an important role, showing why certain steps were required or highlighting the conduct of the paying party.

How can ARC Costs assist?

At ARC Costs, we can assist through the process of preparing for detailed assessment hearings, bill of costs, negotiations and points of reply. As an independent expert, we also represent Paying Parties, and our costs team are adept at Points of Dispute as well as advising on, and negotiating on your behalf if you wish, the maximum possible reductions to be achieved.

The costs lawyers in our team can further assist in more complex, high value costs matters and can represent clients at detailed assessment hearings.

For assistance with your costs related queries, contact one of the team at info@arccosts.co.uk, or speak to one of our experts by calling 01204 397302.