What is a Costs Lawyer? Role, Qualifications & Services
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A Costs Lawyer is a qualified legal professional who specialises in the law and practice of legal costs. They help solicitors, law firms and other clients manage, recover and challenge the costs arising from litigation. They work across a range of legal proceedings, preparing Bills of Costs, advising on costs budgets, negotiating settlements and representing clients in costs disputes.
Unlike a general litigation solicitor, a Costs Lawyer focuses specifically on the rules governing legal costs, including the Civil Procedure Rules and the procedures for detailed assessment.
What does a Costs Lawyer do?
A Costs Lawyer can provide advice and representation throughout the litigation process, from initial costs budgeting through to the final recovery or assessment of costs. Their work commonly includes preparing and reviewing costs budgets, drafting Bills of Costs, preparing Points of Dispute and Points of Reply, negotiating settlements and conducting detailed assessments.
They may act for either party in a dispute. For example, a receiving party may instruct a Costs Lawyer to prepare a Bill of Costs following a successful claim. The Lawyer will examine the work undertaken, hourly rates and disbursements to establish the amount that can properly be claimed. Alternatively, a paying party may instruct a Costs Lawyer to challenge a Bill considered excessive or unreasonable.
Costs Lawyers can also advise on costs during ongoing proceedings, helping solicitors understand the financial implications of applications, settlement offers and litigation strategy.
What qualifications does a Costs Lawyer need?
The title Costs Lawyer is a regulated professional title in England and Wales. They are authorised and regulated by the Costs Lawyer Standards Board (CLSB), which oversees professional standards and regulatory compliance. The qualification process involves specialist training and assessment, together with relevant practical experience.
Once qualified, Costs Lawyers must comply with regulatory requirements, including obligations relating to professional conduct, continuing professional development and professional indemnity insurance.
Authorised Costs Lawyers also have rights to conduct certain reserved legal activities within their regulatory authorisation, including rights of audience and the conduct of costs litigation. These professional rights distinguish an authorised Costs Lawyer from an unregulated costs practitioner.
What is the difference between a Costs Lawyer and a Costs Draftsman?
The terms Costs Lawyer and costs draftsman are sometimes used interchangeably, but there is an important distinction. A Costs Lawyer is an authorised and regulated legal professional.
A costs draftsman, also referred to as a costs draftsman or costs draftsperson, specialises in preparing and analysing legal costs documents but does not necessarily hold the regulated Costs Lawyer qualification.
Experienced costs draftsmen can undertake substantial technical work, including preparing Bills of Costs, costs budgets and Points of Dispute. However, the ability to conduct reserved legal activities depends on the individual’s professional authorisation or an applicable exemption.
Both roles are important within specialist legal costs practices, and many firms employ Costs Lawyers and costs draftsmen alongside other legal professionals.
When should you instruct a Costs Lawyer?
A Costs Lawyer can be instructed at various stages of a legal case. Early involvement is particularly valuable where proceedings are complex, high-value or subject to costs management.
For example, a Costs Lawyer may prepare a Precedent H budget before a costs and case management conference, helping the litigation team estimate future expenditure. Following the conclusion of proceedings, they may prepare a Bill of Costs or advise on the amount recoverable under a costs order.
Where costs are disputed, they can prepare Points of Dispute or Replies, negotiate settlement and provide representation during detailed assessment proceedings.
Specialist assistance can be particularly useful where the dispute concerns hourly rates, expert fees, proportionality or the interpretation of a costs order.
Do Costs Lawyers deal with legal aid costs?
Yes. Costs Lawyers may also specialise in publicly funded work, including public funded legal aid billing and assessment. The team at ARC Costs are specialists in legal aid costs.
Legal aid costs are subject to their own rules, remuneration schemes and procedural requirements. Specialists working in this area may assist solicitors with preparing claims, reviewing disbursements and dealing with assessments by the Legal Aid Agency or the courts.
This can include complex family proceedings, high-cost cases and other publicly funded legal services.
Can a Costs Lawyer represent you in court?
An authorised Costs Lawyer has rights of audience within the scope of their professional authorisation. This allows them to represent clients in relevant costs proceedings, including detailed assessment hearings.
Costs Lawyers may also have the right to conduct costs litigation, enabling them to undertake certain procedural steps independently rather than requiring a solicitor to conduct them. The precise scope of their work depends on the relevant regulatory rules and the nature of the proceedings.
How ARC Costs can help
ARC Costs provides specialist legal costs services to law firms and litigants throughout England and Wales. Our team assists with costs budgeting, Bill of Costs preparation, Points of Dispute, Points of Reply, costs negotiations and detailed assessment proceedings.
We act for both paying and receiving parties across personal injury, clinical negligence, commercial litigation and other areas of civil law.
Whether you require assistance recovering legal costs or challenging the amount claimed by an opponent, ARC Costs can provide specialist support throughout the process.