Crafting Your Bill of Costs

When is a Bill of Costs Required?

Upon the favorable resolution of your case, if an order mandates a detailed assessment of your legal expenses, a Bill of Costs becomes necessary.

For Multi-Track cases, compliance with the new Electronic Bill of Costs is obligatory, with specific regulations in place.

What Details Are Required for Bill of Costs Preparation?

We require access to your case file, whether in digital or paper format, along with any time records. Each bill meticulously outlines the case-related tasks performed, allowing the paying party to review each item thoroughly. Hence, it's crucial to engage an experienced Law Costs Draftsman for bill preparation. This guarantees the creation of a fair bill, encompassing only recoverable items, thereby optimizing the recovery on your bill during any assessment.

Some of Our Most Frequently Asked Questions

What Details Are Required for Bill of Costs Preparation?

Access to your case file, whether in digital or paper format, along with any time records, is necessary. The Bill of Costs meticulously outlines the case-related work, allowing the paying party to review each item comprehensively. It's vital to engage an experienced Law Costs Draftsman to craft a professional bill. This guarantees the creation of a fair Bill of Costs, encompassing only recoverable items, thus maximizing recovery during assessment.

When is an Electronic Bill of Costs Necessary, and What Special Regulations Are Applicable?

For Multi-Track cases with costs claimed post 6 April 2018, the new Electronic Bill of Costs in Excel format is mandatory. This updated format streamlines filtering between Budget phases, work types, tasks, and activities for both parties and the Court.

In Multi-Track cases, a Costs Budget is typically required. If a Costs Management Order has been issued, it must be reflected in the Electronic Bill of Costs by outlining the work phases and distinguishing between incurred and anticipated costs. Additionally, a Precedent Q, illustrating the comparison between incurred and anticipated costs against any Costs Management Order, is necessary.

When serving an Electronic Bill of Costs, it should be sent via postal mail and emailed to the paying party in digital Excel format. Furthermore, when filing for a detailed assessment hearing request at Court, a digital copy of the Bill must be e-filed.

What Expenses Should Be Excluded from a Bill?

Helpful guidance regarding recoverable inter-partes legal costs is outlined in CPR 47 PD 5.12. However, common law has also evolved to specify costs that should not be claimed. These include:

1. Costs related to funding (e.g., setting up the retainer) – as established in Motto & Ors v Trafigura Ltd [2011] EWCA Civ 1150.

2. Inter-fee earner discussions are permissible only in complex cases, as indicated in TUI UK Ltd v Tickell & Others [2016] EWHC 2741 (QB).

3. Caution should be exercised when claiming estimated time without supporting evidence.

What Recovery Can Be Anticipated on a Bill?

The recovery of a Bill during detailed assessment depends on whether a standard or indemnity costs order is granted. Generally, with unchanged hourly rates, one can anticipate between 70 – 80% of the Bill of Costs to be recovered inter-partes. However, adjustments on significant items like success fees, disbursements, or hourly rates can impact this percentage.

In instances where a Costs Management Order is in effect and the Costs Budget has been adhered to, recovery on a Bill of Costs often falls within the range of 80 – 90%..

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