Recoverability disputes sit at the centre of many detailed assessment proceedings. Even where costs have been incurred, the court must still decide whether those costs are recoverable from the paying party and, if so, in what amount.

Under CPR 44 and CPR Part 47, disputes commonly arise concerning:

• proportionality

• unreasonable conduct

• indemnity costs

• delegation between fee earners

• duplication of work

• costs outside the scope of the litigation

• procedural failures affecting recoverability

For paying parties, these arguments often create substantial opportunities to reduce exposure at detailed assessment.

For broader paying party strategy, see:

➡️ Challenge a Bill of Costs
https://www.sphcosts.com/challenge-bill-of-costs

 

What Is Costs Recoverability?

Not every cost incurred during litigation is recoverable from the opposing party.

The court will normally assess whether the costs claimed were:

• reasonably incurred

• reasonable in amount

• proportionate to the issues in dispute

This assessment is usually carried out under the standard basis unless indemnity costs have been ordered.

The court may reduce or disallow costs where the work claimed exceeds what was reasonably required for the litigation.

For a wider overview of the assessment process see:

➡️ Detailed Assessment of Costs Guide
https://www.sphcosts.com/post/detailed-assessment-of-costs-guide

 

Standard Basis vs Indemnity Basis Costs

The basis of assessment can materially affect recoverability.

Standard Basis Assessment

Under the standard basis:

• doubts are resolved in favour of the paying party

• proportionality applies

• the court closely scrutinises reasonableness and necessity

This remains the most common basis of assessment in civil litigation.

Indemnity Basis Assessment

Where indemnity costs are ordered:

• doubts are resolved in favour of the receiving party

• proportionality does not apply in the same way

• wider recovery may be permitted

However, costs must still be reasonably incurred and reasonable in amount.

Indemnity costs are often sought where one party alleges serious litigation misconduct or unreasonable conduct.

 

Conduct and Costs Consequences

Conduct frequently influences recoverability during detailed assessment.

The court may consider:

• unreasonable litigation behaviour

• failure to engage in settlement discussions

• procedural non-compliance

• exaggerated claims

• unnecessary applications

• poor conduct during litigation

Conduct issues may affect:

• proportionality

• entitlement to indemnity costs

• recoverability of specific phases of work

• the overall approach taken by the court at assessment

Part 36 consequences may also materially affect recoverability and entitlement to costs.

➡️ Part 36 Costs Consequences
https://www.sphcosts.com/post/cpr-36-17-costs-consequences

 

Proportionality Challenges

Even where individual items are reasonable, the overall bill may still be disproportionate.

The court considers factors including:

• the value of the claim

• complexity

• importance of the litigation

• conduct of the parties

• wider public importance

Paying parties frequently seek global reductions where the overall costs claimed appear excessive when compared with the litigation itself.

➡️ Proportionality Challenges at Detailed Assessment
https://www.sphcosts.com/post/proportionality-challenges-in-detailed-assessment

 

Delegation, Duplication and Fee Earner Challenges

Recoverability disputes frequently involve challenges to the level of fee earner undertaking the work claimed.

Common issues include:

• partner-level work on routine tasks

• excessive attendance by multiple fee earners

• repeated review and supervision

• duplicated communications

• insufficient delegation

Courts regularly reduce costs where the level of resource deployed appears disproportionate to the work required.

➡️ Fee Earner Delegation Challenges
https://www.sphcosts.com/post/fee-earner-delegation-challenges-at-detailed-assessment

➡️ Guideline Hourly Rates 2026
https://www.sphcosts.com/post/guideline-hourly-rates-2026

 

Recoverability of Counsel’s Fees and Expert Fees

Disputes also frequently arise concerning disbursements.

Typical arguments include:

• whether counsel was reasonably instructed

• duplication between solicitors and counsel

• proportionality of expert evidence

• unnecessary conferences or reports

• excessive expert charging structures

These issues can materially affect the total bill.

➡️ Challenging Counsel’s Fees
https://www.sphcosts.com/post/challenging-counsel-s-fees-at-detailed-assessment

➡️ Challenging Expert Fees
https://www.sphcosts.com/post/challenging-expert-fees-at-detailed-assessment

 

Recoverability Under Fixed Recoverable Costs

Recoverability disputes increasingly arise within the Fixed Recoverable Costs regime.

Common issues include:

• whether the claim falls within fixed costs

• complexity band disputes

• work alleged to fall outside the regime

• entitlement to advocacy fees

• Part 36 consequences

➡️ Intermediate Track Costs Tables
https://www.sphcosts.com/post/intermediate-track-costs-table

➡️ Intermediate Track Complexity Bands
https://www.sphcosts.com/post/intermediate-track-complexity-bands

 

Why Recoverability Arguments Matter

Recoverability disputes frequently determine:

• overall exposure

• settlement leverage

• reserve setting

• negotiation strategy

• the commercial value of pursuing detailed assessment

Well-structured recoverability challenges often lead to settlement before a contested hearing takes place.

 

Paying Party Detailed Assessment Support

We act for paying parties across England & Wales in:

• Points of Dispute drafting

• proportionality challenges

• conduct and indemnity costs disputes

• hourly rate challenges

• delegation and duplication arguments

• recoverability disputes under CPR 44 and CPR Part 47

 

Our work includes both provisional and oral detailed assessment proceedings.

➡️ Draft Points of Dispute
https://www.sphcosts.com/draft-points-of-dispute

➡️ Paying Party Detailed Assessment Strategy
https://www.sphcosts.com/detailed-assessment-costs-disputes

➡️ Contact SPH Costs
https://www.sphcosts.com/contact