Summary Assessment of Costs: How Does It Work?

Summary assessment of costs is a procedure used by courts in England and Wales to determine how much one party must pay towards another party’s legal costs, usually at the conclusion of a hearing.

Unlike detailed assessment of costs, which involves a separate procedure to examine a Bill of Costs, summary assessment allows the judge to determine the recoverable amount without lengthy additional proceedings.

However, the court does not simply approve the amount requested. It must consider whether the costs claimed are reasonable and, where applicable, proportionate.

At ARC Costs, our Costs Lawyers and Costs Draftsmen assist solicitors with preparing statements of costs, reviewing costs claims and resolving disputes concerning recoverable legal fees.

What is Summary Assessment of Costs?

Summary assessment is the process by which a judge determines the amount of legal costs payable following a hearing or trial. The procedure is governed principally by CPR 44 and Practice Direction 44.

Where the court orders one party to pay another party’s costs, it may assess those costs immediately rather than directing a separate detailed assessment.

For example, if a claimant successfully opposes an interim application, the judge may order the defendant to pay the claimant’s costs and determine the amount at the same hearing.

The assessment considers the work undertaken, the hourly rates claimed, counsel’s fees and other relevant expenditure. Although summary assessment is generally quicker than detailed assessment, the court still has discretion to reduce excessive or unreasonable costs.

When is Summary Assessment Used?

Under Practice Direction 44, the general rule is that the court should make a summary assessment at the conclusion of:

• A fast-track trial, where the applicable costs are not entirely fixed.
• Other hearings lasting no more than one day, including many interim applications.

There are exceptions, including where there is good reason not to assess costs immediately or where particular rules restrict summary assessment.

For example, complex costs issues may be more appropriately dealt with through detailed assessment.

Summary assessment is particularly common following applications for disclosure, relief from sanctions, amendments to statements of case and other procedural matters.

For more information about the costs consequences of applications, see our guide to who pays the costs of an interim application.

What is Form N260?

Form N260 is the standard model statement of costs used for summary assessment. It provides the court and the opposing party with a breakdown of the legal costs being claimed. The statement should identify the work undertaken and include relevant information such as:

• The time spent by each grade of fee earner.
• The hourly rates claimed.
• Solicitors’ costs of preparing for and attending the hearing.
• Counsel’s fees and other disbursements.
• VAT, where recoverable.

The statement should follow Form N260 as closely as possible and must be signed by the party or their legal representative.

Accurate preparation is important because the judge may need to assess the claimed costs immediately after determining the substantive application.

The official form is available from HM Courts & Tribunals Service.

What Are the Deadlines for Filing Form N260?

Practice Direction 44 sets out the usual filing and service deadlines. For a fast-track trial, the statement of costs must be filed and served at least two days before the trial. For other hearings, the deadline is generally at least 24 hours before the hearing.

Parties should also comply with any additional directions or applicable court-specific requirements.

Failure to file and serve the statement on time does not automatically prevent recovery, but the court may take that failure into account when deciding what costs order to make. This could affect the amount recovered or result in additional costs being incurred.

How Does the Court Calculate Recoverable Costs?

When conducting a summary assessment, the judge considers the relevant circumstances and applies the appropriate basis of assessment.On the standard basis, costs must be reasonably incurred, reasonable in amount and proportionate.

The court may examine solicitors’ hourly rates, the time spent preparing documents, the number of fee earners involved and the necessity of particular expenses.

For example, if several solicitors attended a straightforward application hearing, the judge may question whether all their attendance costs should be recoverable. Similarly, excessive preparation time or unnecessarily high hourly rates may be reduced.

The court may refer to the guideline hourly rates when considering the reasonableness of solicitors’ charges. Where costs are assessed on the indemnity basis, different rules concerning proportionality and the resolution of doubts apply.

Can You Challenge a Summary Assessment of Costs?

Yes, but the available procedure depends on whether the court has already assessed the costs. Before the assessment, the paying party can raise objections to the amount claimed, including unreasonable hourly rates, excessive time spent or unnecessary disbursements.

These objections should be supported by clear reasons. Once the court has summarily assessed the costs and fixed the amount payable, the paying party cannot simply commence detailed assessment or serve Points of Dispute to reopen the decision.

A challenge to the assessment may require an appeal or another appropriate procedural application, subject to the relevant rules and time limits.

Summary Assessment vs Detailed Assessment

The main difference is the procedure used to determine the recoverable amount.

Summary assessment is usually undertaken by the judge at the conclusion of a hearing, using a statement of costs.

Detailed assessment generally involves a separate process in which the receiving party serves a Bill of Costs and the paying party may respond with Points of Dispute.

Detailed assessment is commonly used where costs are substantial or require more extensive examination.

ARC Costs assists with Bills of Costs preparation, Points of Dispute and detailed assessment proceedings.

When Must Summarily Assessed Costs Be Paid?

Under CPR 44.7, a party ordered to pay a specified amount of costs must generally do so within 14 days of the judgment or order, unless the court specifies a different payment date. Failure to pay may result in enforcement action.

It is therefore important to check the wording of the order and seek advice promptly if there is a dispute about payment.

How ARC Costs Can Help

ARC Costs provides specialist legal costs services to solicitors, law firms and parties involved in civil litigation throughout England and Wales.

Our team assists with preparing and reviewing statements of costs, assessing the reasonableness of claimed fees and advising on costs disputes.

We also provide Costs Lawyer advocacy and assistance with detailed assessment where appropriate.

Whether you need support preparing costs for an upcoming hearing or reviewing a substantial costs claim, our specialists can help you understand the applicable rules and recoverable amounts.

Contact ARC Costs to discuss your legal costs requirements.

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