Help With Legal Costs: Understanding Your Options

Legal costs can quickly become a significant financial concern, particularly if you have been ordered to pay another party’s fees or have received a legal bill that is much higher than expected.

Whether you are involved in ongoing court proceedings, disputing a Bill of Costs or trying to understand a costs order, obtaining specialist help with legal costs can make a substantial difference.

At ARC Costs, our Costs Lawyers and Costs Draftsmen provide assistance with legal costs disputes throughout England and Wales. We work with solicitors, businesses and individuals to assess costs claims, challenge unreasonable charges and negotiate settlements.

When Might You Need Help With Legal Costs?

There are several situations where specialist legal costs advice may be beneficial.

You may need assistance if:

• You have been ordered to pay another party’s legal costs.
• You have received a Bill of Costs and believe the amount is excessive.
• You need to recover legal costs following successful court proceedings.
• You are facing detailed assessment proceedings.
• You need help understanding whether particular solicitors’ fees are recoverable.

The appropriate approach depends on the nature of the dispute and whether a court has already determined liability for costs.

For example, being ordered to pay another party’s costs does not necessarily mean that every amount claimed is recoverable.

Our guide to challenging legal costs explains how costs can be disputed through the assessment process.

What Happens If You Have Been Ordered to Pay Legal Costs?

In civil proceedings, the general rule is that the unsuccessful party pays the successful party’s legal costs, although the court has discretion to make a different order.

If you receive a costs order, it is important to establish whether the court has already fixed the amount payable or whether the costs must still be assessed.

Where costs are subject to detailed assessment, the receiving party will usually prepare a Bill of Costs setting out the amounts claimed.

The paying party may then challenge individual items, including excessive hourly rates, unreasonable time spent or unnecessary expenses.

ARC Costs can assist with reviewing the claim and preparing Points of Dispute where appropriate.

Can You Reduce the Amount of Legal Costs You Owe?

Potentially. The amount claimed in a Bill of Costs is not necessarily the amount that will ultimately be payable.

Legal costs may be challenged where the charges are unreasonable, excessive or not recoverable under the relevant rules.

For example, a Bill of Costs may include work that was duplicated, excessive time spent on routine tasks or hourly rates that are not justified by the circumstances. A specialist costs review can help identify whether there are reasonable grounds for seeking a reduction.

Case Study: £400,000 Costs Claim Reduced by Approximately 50%

ARC Costs recently assisted a client facing a legal costs demand of approximately £400,000.

The potential liability placed significant pressure on the client’s finances, including the risk of losing equity in their home.

Our team reviewed the Bill of Costs, prepared Points of Dispute and negotiated with the receiving party. The matter was settled for approximately £200,000, reducing the amount claimed by around 50%.

Although the client remained responsible for a substantial sum, the negotiations significantly reduced their financial exposure.

This demonstrates why it can be worthwhile to obtain specialist advice before agreeing to pay a substantial costs demand.

Can Legal Aid Help With Legal Costs?

Legal aid is government-funded assistance that may help eligible individuals pay for legal advice and representation. However, it is only available for certain types of legal matters and is subject to eligibility requirements.

It does not automatically cover legal costs that you have been ordered to pay to another party. If you are looking for financial assistance with legal representation, you can check your eligibility through the government’s legal aid service.

Legal aid is different from the specialist costs services provided by ARC Costs.

Our role is to assist with the preparation, assessment, recovery and challenge of legal costs, rather than provide government-funded representation for the underlying dispute.

What Is the Difference Between Legal Advice and Costs Advice?

General legal advice concerns your rights, obligations and options in relation to the underlying dispute. Specialist costs advice focuses on the financial and procedural consequences of litigation.

A Costs Lawyer can assist with issues such as the recoverability of legal fees, the reasonableness of costs claimed and the procedures involved in detailed assessment.

For example, your litigation solicitor may advise whether to defend a claim, while a costs specialist may assess the amount being claimed by the opposing party.

You can learn more about the process in our guide to detailed assessment of costs.

How ARC Costs Can Help

ARC Costs provides specialist assistance to paying and receiving parties involved in legal costs disputes.

Our services include reviewing Bills of Costs, preparing Points of Dispute, negotiating settlements and assisting with detailed assessment proceedings.

We also support solicitors with Bills of Costs preparation and provide Costs Lawyer advocacy where appropriate.

If you need help with legal costs, obtaining advice early is important, particularly where deadlines apply.

Contact ARC Costs to discuss your circumstances and find out how our specialists can assist.

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