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Paying Party Case Study – Reducing a £15,500 Costs Claim to £150 on Assessment
Introduction
This case study illustrates how paying parties costs disputes can be successfully defended through targeted recoverability challenges in detailed assessment proceedings.
Background to the Costs Dispute
We were instructed by the paying party in a housing disrepair claim. Proceedings had initially been issued but were later discontinued due to procedural errors by the claimant. The claim was subsequently reformulated and resolved without further proceedings being issued.
A Bill of Costs was then served in the sum of just under £15,500. Although the Bill acknowledged that no costs were claimed in relation to the first set of proceedings following discontinuance, costs incurred prior to issue of those proceedings were still claimed.
We argued that costs incurred prior to the discontinued proceedings were not properly recoverable. The established principle is that costs “of the proceedings” include pre-issue costs only where they were incurred with a view to proceedings being commenced and where proceedings were in fact commenced.
In this matter, the procedural history and discontinuance meant those costs fell outside what was properly recoverable. This became the central issue in the dispute
Assessment Strategy for the Paying Party
On behalf of our client, we:
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Challenged recoverability of pre-issue costs
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Applied procedural principles arising from discontinuance
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Advanced proportionality arguments
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Pursued the matter through Part 8 proceedings and commencement of assessment
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Dealt with the dispute progressing to provisional assessment
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Sought correction of an erroneous award of assessment costs
Despite not receiving the Notice of Hearing for the provisional assessment (as both copies were sent to the claimant), we later challenged the order for assessment costs made in the claimant’s favour.
The Provisional Assessment and Further Application
On behalf of our client, we:
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Challenged recoverability of pre-issue costs
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Applied procedural principles arising from discontinuance
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Advanced proportionality arguments
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Pursued the matter through Part 8 proceedings and commencement of assessment
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Dealt with the dispute progressing to provisional assessment
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Sought correction of an erroneous award of assessment costs
This formed part of contested detailed assessment proceedings, where recoverability and costs of assessment are frequently disputed. Despite not receiving the Notice of Hearing for the provisional assessment (as both copies were sent to the claimant), we later challenged the order for assessment costs made in the claimant’s favour.
The Outcome of the Assessment
From an original claim of nearly £15,500, the amount ultimately allowed was approximately £3,600. Following the correction of the assessment costs order, the net recovery to the claimant was reduced to approximately £150.
In practical terms, the claimant’s position was significantly worsened once their own litigation costs were considered.
This case highlights that:
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Pre-issue costs are often open to challenge
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Procedural history can materially affect recoverability
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Provisional assessment outcomes can be corrected where necessary
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Paying parties can materially reduce exposure through targeted legal and procedural arguments
Experienced costs lawyers regulated by the CLSB understand how to deploy these arguments effectively…
Contested assessments frequently turn on technical rules, procedural detail, and recoverability principles rather than the face value of the bill. Experienced costs lawyers regulated by the CLSB understand how to deploy these arguments effectively in detailed assessment proceedings and how to pursue correction of adverse procedural outcomes.