How do Points of Dispute and Points of Reply Influence Detailed Assessment Outcomes?

In the costs litigation process, Points of Dispute and Replies to Points of Dispute play a decisive role in shaping the outcome of a detailed assessment hearing. These documents guide the Costs Judge through the contested items within the Bill of Costs, clarifying the parties’ positions and the nature and grounds of each challenge.

Whether the matter proceeds to a provisional assessment, a full oral hearing, or a negotiation settlement, the quality and clarity of the Points of Dispute and Replies often determine how the costs are ultimately assessed.

ARC Costs outlines how these documents influence the detailed assessment process, the technical requirements under CPR 47 and the Precedents within the Schedule of Costs Precedents, and best practice for both paying and receiving parties.

What are Points of Dispute?

After service of the Bill of Costs, the paying party has 21 days to serve their Points of Dispute, unless a different timetable is agreed or ordered. The aim of this document is to identify concisely the specific points stating the objections to individual items claimed and to explain the nature and grounds of the dispute.

Under CPR 47.9 and its accompanying Practice Direction, the Points of Dispute must:

• Identify specific points stating concisely the objections to particular items.
• Refer to the item in the bill by number.
• State the grounds of dispute (e.g., time spent excessive, rate unreasonable, work unnecessary).
• Follow the format prescribed in the Schedule of Costs Precedents, including the correct use of the “left hand box”.

The requirement to “identify specific points stating concisely the nature and grounds of the dispute” derives from both the CPR and guidance from the Court of Appeal, which has repeatedly emphasised clarity, brevity, and precision in Points of Dispute.

How to Structure of Points of Dispute

Under the Precedent format, Points of Dispute must:

1. Use the left hand box to insert the item numbers where the point arises.
2. Include a short statement of the issue in the right-hand column.
3. Avoid generalised or sweeping objections that do not correspond to an “item in the bill”.
4. Be specific, for instance, if the paying party argues that time spent is unreasonable, the objection must address the particular entry, fee earner, hourly rate or task.

Where the paying party fails to comply with these rules, the receiving party may argue that the point is defective, unclear, or should carry little weight during assessment.

In extreme cases, unclear or non-compliant Points of Dispute may be treated as ineffective, leading to the risk of being unable to contest those items at all.

What are Replies to Points of Dispute?

Once Points of Dispute are served, the receiving party may, but is not obliged to, serve Replies to Points of Dispute under CPR 47.13. Replies respond directly to the paying party’s challenges and provide justification for the items claimed.

The receiving party should draft Replies when:

• A dispute requires clarification or explanation.
• The paying party raises a significant argument that must be rebutted.
• The point involves a complex matter such as proportionality, conduct, counsel’s fees, or retainers.
• The absence of a reply could unfairly weaken the receiving party’s position at the detailed assessment.

Replies must mirror the Points of Dispute format by using the left hand box as shown in the Schedule of Costs Precedents, inserting the item numbers challenged and offering concise responses.

How do Points of Dispute Influence Detailed Assessment?

1. They frame the scope of the Hearing

The Points of Dispute determine which items will form the subject of argument at a detailed assessment hearing. If a paying party fails to object to an item, it is generally treated as accepted. Therefore, the drafting of Points of Dispute is fundamental — a party who does not “take the point” cannot usually rely on new objections later.

2. They shape judicial interpretation

Costs judges frequently rely heavily on the wording of the Points of Dispute to understand the nature of the dispute. Well-argued points help the judge quickly identify whether:

• The challenge concerns time spent,
• The hourly rate,
• The relevance of the work,
• Duplication, or
• Proportionality.

Courts have criticised overly long or vague Points of Dispute, with the Court of Appeal confirming that objections must be clear and precise, not essays or narrative arguments.

3. They affect whether the case goes to Provisional or Full Assessment

In lower-value matters (usually under £75,000), the court often conducts a provisional assessment. In these cases, the only documents the judge reviews are:

• The Bill of Costs
• Points of Dispute
• Replies to Points of Dispute (if served)

No oral hearing takes place. Therefore, the precision and persuasive quality of the written arguments can significantly influence the assessed figure.

4. They can prevent or trigger Adverse Costs Orders

Under CPR 47.20:

• Weak or unreasonably maintained Points of Dispute may lead to costs penalties against the paying party.
• Conversely, Replies that fail to justify items may result in reductions being applied.

The clarity and accuracy of Points and Replies therefore have direct financial consequences.

How do Points of Reply Influence Detailed Assessment?

1. They clarify ambiguities

If the paying party’s objections are unclear, grammatically flawed, or fail to identify the item numbers, Replies can clarify the receiving party’s understanding and prevent misinterpretation by the judge.

2. They strengthen justification for high-value or contentious items

In cases involving:

• Counsels’ fees
• Expert reports
• Large disclosure tasks
• High hourly rates

Replies provide necessary explanation and evidence supporting the claim.

3. They rebut incorrect assertions

For example, if the paying party incorrectly asserts that time spent is disproportionate or incorrectly applies the grounds of dispute, the Receiving Party’s Replies can correct the misstatement.

4. They assist the Court in a fair assessment

Judges frequently refer to Replies to understand:

• Why certain items were necessary
• The context of the work
• How the costs relate to the wider litigation
• Whether the paying party’s objections are mischaracterised

Well-drafted Replies “balance” the Points of Dispute and help the judge reach a fair and informed decision.

What Happens if Points of Dispute are Not Filed?

If the paying party fails to serve Points of Dispute within 21 days, the receiving party can apply for a Default Costs Certificate under CPR 47.11. This results in the Bill of Costs being awarded in full.

This is one of the strongest procedural sanctions in costs law, demonstrating the importance of timely and compliant Points of Dispute.

Best Practices for Drafting Points of Dispute and Replies

For Paying Parties (Points of Dispute)

• Use the left hand box to specify the item numbers where the point arises.
• Provide short, targeted objections.
• Base challenges on identifiable evidence (e.g., excessive time spent).
• Avoid generic or narrative objections.
• Ensure submissions comply with CPR 47 and the Schedule of Costs Precedents.

For Receiving Parties (Replies)

• Respond only where necessary, and avoid inflating the bill with unnecessary Replies.
• Be concise but persuasive.
• Correct inaccuracies or exaggerations in Points of Dispute.
• Use Replies to emphasise the reasonableness and proportionality of the Bill.

How can ARC Costs Assist?

ARC Costs provides specialist assistance at every stage of the detailed assessment process, ensuring that both Points of Dispute and Replies to Points of Dispute are drafted to the highest professional standard.

Our experienced Costs Lawyers and Costs Draftsmen understand how to identify specific points stating concisely the nature and grounds of dispute, how to apply the CPR and the Schedule of Costs Precedents, and how to present challenges in a way that resonates with a costs judge at either provisional or detailed assessment.

We can assist with:

• Drafting clear, targeted Points of Dispute that maximise reductions for paying parties
• Preparing persuasive Replies to Points of Dispute to defend the Bill of Costs
• Reviewing Bills of Costs for proportionality and reasonableness
• Advising on strategic objections and responses
• Representation at detailed assessment hearings
• Applications relating to Default Costs Certificates or late service issues
• Negotiation of costs to achieve favourable settlements

With a reputation for accuracy, compliance, and strong advocacy, ARC Costs ensures that your case is presented effectively, giving you the best chance of achieving a positive detailed assessment outcome.

Should you require any assistance or free initial advice, please call us on 01204 397302, or email one of our costs experts direct on info@arccosts.co.uk.

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