What Are Points of Dispute? Precedent G & Costs Rules

Points of Dispute are a formal document used by a paying party to challenge legal costs claimed by a receiving party during detailed assessment proceedings.

When a court orders one party to pay another party’s legal costs, the receiving party may serve a Bill of Costs setting out the amount they wish to recover. The paying party can then examine the Bill and identify any costs considered excessive, unreasonable or otherwise unrecoverable.

Points of Dispute set out those objections and explain why particular costs should be reduced or disallowed. They are an important part of the detailed assessment process because they establish which issues remain in dispute and require consideration by the court.

What is the purpose of Points of Dispute?

The purpose of Points of Dispute is to identify the issues that prevent the parties from agreeing the amount of legal costs payable. A paying party might dispute the hourly rates claimed by solicitors, the amount of time spent on particular tasks, the necessity of expert fees or whether work falls within the scope of the costs order.

For example, a Bill of Costs might include six hours of senior solicitor time for preparing a relatively straightforward document. The paying party may argue that the time is excessive or that the work could reasonably have been undertaken by a more junior fee earner.

The Points of Dispute should explain the objection and, where appropriate, propose a reasonable alternative.

Properly drafted Points of Dispute allow the receiving party to understand the challenge and respond before the matter reaches a detailed assessment hearing.

What rules apply to Points of Dispute?

The procedure is governed by CPR Part 47 and Practice Direction 47. Paragraph 8.2 of Practice Direction 47 requires Points of Dispute to be short and to the point.

They should identify any general points or matters of principle which require decision before addressing individual items in the Bill.

For each disputed item, the paying party should identify the relevant item numbers and state concisely the nature and grounds of dispute. This means that general objections such as “the costs are excessive” will not necessarily be sufficient.

The document should provide enough information for the receiving party and costs judge to understand the basis of the challenge.

What is Precedent G?

Precedent G is the standard format used for preparing Points of Dispute. It forms part of the costs precedents annexed to Practice Direction 47 and provides a structured way to present objections to a Bill of Costs.

The document is divided into columns. The left hand box identifies the relevant item or issue and sets out the paying party’s objection.

The receiving party can then respond in the appropriate right-hand box, explaining whether the objection is accepted or disputed.

This layout allows the parties’ positions to be considered alongside one another.

When preparing the document, it is important to use the item numbers appearing in the Bill of Costs so that each objection can be linked to the relevant work or disbursement.

The standard format helps ensure the objections and responses are clear, particularly where a Bill contains numerous disputed entries.

What should Points of Dispute include?

Effective Points of Dispute should focus on the specific reasons why the costs claimed should not be allowed in full. Common objections concern the hourly rates charged, excessive time, duplication of work, unnecessary attendances and unreasonable disbursements.

The paying party may also raise broader issues, such as proportionality, the basis of assessment or the effect of an approved costs budget. However, each objection should be sufficiently particularised.

For example, if the paying party challenges time spent reviewing documents, it should identify the relevant entries and explain why the time is considered excessive.

Where the objection concerns hourly rates, it may be appropriate to identify the rate claimed and the alternative rate proposed.

The objective is to present a clear dispute capable of being addressed through negotiation or determined by the court.

What did the Court of Appeal say in Ainsworth v Stewarts Law LLP?

The importance of properly drafted Points of Dispute was considered by the Court of Appeal in Ainsworth v Stewarts Law LLP [2020] EWCA Civ 178. The case concerned a solicitor-and-client assessment in which the client sought to challenge numerous items of legal costs.

One of the Points of Dispute made a broad challenge to document-related costs without adequately identifying which individual items were disputed or why. The Court of Appeal confirmed that Points of Dispute must be sufficiently focused to allow the receiving party and the court to understand the objections.

The judgment reinforced the importance of identifying the specific grounds of dispute rather than relying on general statements or reserving the right to raise further objections later.

Although the case concerned a solicitor-and-client assessment, its discussion of Practice Direction 47 and Precedent G provides useful guidance on drafting Points of Dispute.

When must Points of Dispute be served?

Under CPR 47.9, the paying party generally has 21 days from service of the Notice of Commencement to serve Points of Dispute, unless the court directs otherwise or the deadline is validly extended.

If the paying party fails to serve Points of Dispute within the applicable period, the receiving party may apply for a default costs certificate.

Default costs certificates can have significant financial consequences because they generally entitle the receiving party to the costs claimed in the Bill without the usual contested assessment.

The paying party may apply to set aside the certificate, but the court will consider the circumstances and the applicable procedural requirements.

What happens after Points of Dispute are served?

The receiving party may serve Points of Reply addressing the objections raised. The parties can then negotiate the disputed costs, often resolving some or all of the issues without court intervention.

If agreement cannot be reached, the receiving party may request a detailed assessment hearing or follow the provisional assessment procedure where applicable.

The costs judge will consider the Bill of Costs, Points of Dispute, any Replies and the supporting evidence before determining the amount recoverable.

How ARC Costs can help with Points of Dispute

ARC Costs provides specialist assistance with the preparation and review of Points of Dispute for paying parties across England and Wales.

Our team examines the Bill of Costs, identifies potential challenges to the costs claimed and prepares focused objections in accordance with CPR Part 47 and Precedent G.

We also assist receiving parties with Points of Reply, costs negotiations and detailed assessment proceedings.

Whether you need to challenge a substantial Bill of Costs or respond to objections raised by an opponent, ARC Costs can provide practical advice and specialist support throughout the assessment process.

For further information, visit our Points of Dispute service or contact ARC Costs.

Follow Us