We were early adopters of the new format inter partes bill of costs (Costs Precedent S), one of the first to embrace the radical ‘Jackson bill’.
What is a bill of costs?
A bill of costs is a detailed account, given in a prescribed format, of the costs incurred by a party to a legal case. Today the bill of costs takes the form of a complex spreadsheet. As well as providing an overview of the legal case and a detailed account of legal disbursements (expenses that solicitors pay on behalf of their clients, such as court fees, an expert’s fees, and counsel’s fees), the spreadsheet sets out a line-by-line account of work done by solicitors and other fee earners, broken into units of just six minutes (or multiples thereof).
Whilst most inter-partes (between the parties) claims for legal costs settle amicably - and without the need for a detailed assessment hearing before a specialist costs Judge – many at least require the preparation and service of a bill of costs. Not all incurred costs are recoverable per se, and many costs will be controversial and fought over in negotiations and, if necessary, at a detailed assessment (a hearing before a specialist judge). It is only through the instruction specialist costs lawyers or consultants, experienced in the intricacies of bill preparation and the detailed assessment process more generally, that solicitors can achieve the best outcomes for their clients.
When is a bill of costs needed?
A bill of costs is required in order to advance a contested inter partes costs claim. It is not possible to bring a costs claim before the court for assessment without one. Today, most bills of costs are required to adhere to the complex requirements of Costs Precedent S (although other, simpler, formats are followed in a minority of inter partes cases). Similarly, a dispute about cost between a solicitor and his or her own client (or former client) cannot progress to a formal assessment hearing without an account of the solicitor’s costs and disbursements, set out in the prescribed format (a Solicitors Act 1974 breakdown of costs, Costs Precedent P). We at DeNovo are acknowledged - and long practised - experts in the preparation of all formats of bills and breakdowns required in legal costs proceedings.
What information is needed to prepare a bill of costs?
The bill of costs (whichever format) and/or Solicitors Act 1974 breakdown, provides a very detailed account of all relevant disbursements and of work carried out by solicitors and other fee earners. To prepare the account a competent legal costs professional will therefore require access to the underlying case or project files. For an inter partes costs claim, access will typically be required to:
- The solicitor’s time recording and disbursement histories
- The solicitor’s billing file with details of all disbursements incurred and of all invoices delivered to the client
- Pleadings and orders
- Instructions to counsel and associated bundles of documents, as well as any hearing and trial bundles
- The solicitor’s correspondence files (today, usually in electronic format) including all email traffic generated in the course of the underlying litigation
Drafting and negotiating on your bill of costs
We work hard to ensure that our clients achieve the very best settlements and results on detailed assessment. That process starts with the instruction of experts in the drafting of costs claims. We were early adaptors of the ‘Jackson bill’ (precedent Model S). Whether on the paying or receiving side, our clients recognise that it makes best sense to instruct negotiators who are also experts in bill drafting. At rates typically well below those charged by solicitors and counsel, our legal costs consultants and costs lawyers offer long practiced expertise in the preparation and negotiation of legal costs claims of all kinds.
What items should not be claimed in a bill of costs?
The bill of costs should, of course, exclude the cost of any wok that does not fall within the ambit of the relevant order for costs. More generally, certain costs – some of which are nonetheless chargeable by the solicitors to his or her client - may not be recovered in an inter partes costs claim. It is the job of skilled and experienced legal costs professionals to identify those costs that are (or are not) considered recoverable by the costs court (certain shades of administrative work, for example).
What is the expected recovery on any bill of costs?
The level of recovery depends on a wide variety of factors – including the terms of the relevant order for costs, the nature and/or scale of the proceedings or project, and the manner in which a case is conducted by the relevant legal team. Our experts will be able to advise you on the level of recovery you are likely to achieve.
Why instruct DeNovo to prepare your bill of costs?
We have prepared some of the largest claims for costs ever advanced in this jurisdiction. Large or small, regular or singular, we have unrivalled experience in preparation of bills of costs and breakdowns of costs. Whether you require a schedule of costs (N260) for the purpose of negotiations or to obtain an interim payment in ongoing litigation, or a bill of costs for inter partes detailed assessment (typically a Costs Precedent S), or a Solicitors Act 1974 breakdown (Costs Precedent P), we would be delighted to discuss our competitive terms and our services.
