Between the Parties (Inter Partes) Costs Explained

Between the parties (often referred to as inter partes) costs disputes arise where one party seeks to recover litigation costs from another. These disputes most commonly occur following the conclusion of substantive proceedings, but may also arise at interim stages where costs orders are made. This page provides background explanation only and does not describe a standalone service. It explains what between the parties costs are, how such disputes arise, and why they so often require specialist handling.

What Are “Between the Parties” (Inter Partes) Costs?

Between the parties costs are costs claimed by one litigant against another, as opposed to costs payable from a fund, from public funding, or assessed on a non-inter partes basis. They typically arise following judgment, settlement, or where the court makes a specific order as to costs during proceedings.

Such costs are usually subject to detailed assessment unless agreed. The assessment process considers whether the costs claimed were reasonably incurred and reasonable in amount, applying the principles set out in the Civil Procedure Rules and relevant case law.

Why Inter Partes Costs Disputes Are Often Contentious

Inter partes costs disputes are rarely straightforward. Paying parties commonly scrutinise not only the quantum claimed, but also how the litigation was conducted, who carried out the work, and whether the work was appropriate to the issues in dispute.

Common areas of contention include:

Hourly rates and grade of fee earner
Delegation of work and supervision
Proportionality of costs to the matters in issue
Compliance with costs management orders and approved budgets
Conduct-based arguments and claims for indemnity costs

These issues frequently give rise to significant reductions on assessment where costs are not clearly structured or properly justified.

The Role of Specialist Costs Professionals

Because between the parties costs disputes are governed by procedural rules and judicial guidance rather than local custom or convention, specialist costs expertise is often required to navigate them effectively.

Specialist Costs Lawyers and Law Costs Draftsmen are instructed to prepare, challenge, and defend inter partes costs claims in accordance with the applicable procedural framework, judicial approach to proportionality, and established assessment principles.

How Between the Parties Costs Are Resolved

Most inter partes costs disputes are resolved through a combination of:

Negotiation following service of a bill of costs and points of dispute
Partial agreement narrowing the issues in dispute
Detailed assessment proceedings where agreement cannot be reached

The outcome will depend not only on the figures claimed, but on how the costs are presented, justified, and defended in light of the court’s approach to reasonableness and proportionality.

When Specialist Costs Input Is Commonly Required

Specialist costs input is often required where:

Substantial sums are at stake
Costs have been tightly budgeted or exceeded
Conduct or indemnity costs arguments are raised
The matter proceeds to detailed assessment
The paying party is a well-resourced opponent

In such cases, early involvement can materially affect recoverability and exposure.

Summary

Between the parties costs disputes are a core feature of civil litigation in England & Wales. While the underlying principles are well established, their application in practice is highly fact-sensitive and frequently contested. Understanding how such disputes arise — and how they are assessed — is essential for any party seeking to recover or resist litigation costs.