Points of Dispute in Detailed Assessment: Complete Guide (CPR Part 47)

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Points of Dispute are the formal response served by a paying party after receiving a bill of costs in detailed assessment proceedings. They set out the objections to the costs claimed and identify the reductions sought. Detailed assessment disputes frequently centre on issues such as hourly rates, proportionality, delegation and the scope of work undertaken.

Under CPR Part 47, Points of Dispute play a central role in shaping the issues to be determined by the court. They define the areas of challenge and often determine whether a dispute resolves through negotiation or proceeds to provisional or oral detailed assessment.

For a full overview of the assessment process, see our Detailed Assessment of Costs Guide.

What Are Points of Dispute?

Points of Dispute are the paying party’s formal response to a bill of costs served by the receiving party. The document identifies the entries within the bill that are challenged and explains the basis on which reductions are sought.

In practice, Points of Dispute frequently address issues such as excessive hourly rates, inappropriate fee earner grades, duplication of work, and the proportionality of the costs claimed. By defining the scope of the dispute, they form the foundation of negotiation between the parties and guide the court’s approach during detailed assessment.

Well-structured Points of Dispute focus on the issues most likely to influence the court’s decision rather than challenging every entry indiscriminately.

Precedent G – Points of Dispute Template

Points of Dispute are normally drafted using the Precedent G format contained in the Schedule of Costs Precedents to the Practice Direction supplementing CPR Part 47. This format provides a structured way for the paying party to identify the entries within a bill of costs that are challenged and to explain the basis of those objections.

The layout of Precedent G enables the dispute to be presented clearly, allowing each item in the bill to be addressed in turn together with the reasons why the amount claimed is disputed. In practice, courts expect Points of Dispute to follow this structure so that the issues between the parties can be identified quickly and considered efficiently during the assessment process.

The official template can be viewed here:

Precedent G – Points of Dispute Template

The document illustrates the typical structure used in detailed assessment proceedings, including columns identifying the item challenged, the point raised by the paying party, any reply from the receiving party, and the decision of the court.

When Must Points of Dispute Be Served?

Under CPR Part 47, the paying party normally has 21 days from service of the notice of commencement and bill of costs to serve Points of Dispute.

If Points of Dispute are not served within that period, the receiving party may apply for a Default Costs Certificate, which entitles them to recover the costs claimed in the bill without detailed assessment.

Further guidance on the consequences of failing to respond can be found in our guide to Default Costs Certificates.

Common Grounds of Challenge in Points of Dispute

Points of Dispute typically raise a number of recurring issues in costs litigation. These commonly include:

Hourly rate challenges

Paying parties often challenge hourly rates that exceed the Guideline Hourly Rates used by the courts as a benchmark for assessing reasonableness.

Delegation and fee earner grade

Costs may be reduced where routine tasks have been carried out by senior fee earners rather than appropriately delegated.

Duplication of work

Where multiple fee earners undertake the same task, the court may reduce duplicated time.

Proportionality, Even where individual items of work are reasonable, the court may reduce overall costs if they are disproportionate to the matters in issue.

Work outside the scope of the claim

Time spent on work not reasonably required for the litigation may be disallowed.

For a more detailed explanation of these arguments see our article on How Paying Parties Challenge a Bill of Costs at Detailed Assessment.

Replies to Points of Dispute

After Points of Dispute have been served, the receiving party may respond by serving Replies to Points of Dispute. Replies explain why the costs claimed are justified and provide further context for the work undertaken during the litigation.

Replies often address arguments concerning hourly rates, complexity of the case, delegation of work and the necessity of the steps taken in the proceedings.

The exchange of Points of Dispute and Replies frequently narrows the issues between the parties and can lead to negotiated settlement before a detailed assessment hearing takes place.

How Points of Dispute Influence Negotiation

Although Points of Dispute are a procedural requirement under CPR Part 47, their strategic importance goes far beyond compliance.

In practice, the quality and focus of Points of Dispute often determine the outcome of negotiations between the parties. Clear and targeted challenges allow the receiving party to assess the strengths and weaknesses of the bill and frequently lead to reductions before the matter reaches the court.

Where Points of Dispute are unfocused or overly generic, they are less likely to influence settlement discussions or the court’s approach to assessment.

Points of Dispute and Provisional Assessment

Many bills of costs are determined through provisional assessment, a paper-based process in which the court considers the bill, Points of Dispute and Replies without an oral hearing.

The judge’s provisional decision will reflect the arguments raised in the written documents. For this reason, the structure and clarity of Points of Dispute can significantly influence the outcome of provisional assessment.

Strategic Importance of Points of Dispute

Effective Points of Dispute require more than identifying individual items within the bill. Successful challenges often involve linking hourly rate disputes, delegation issues and proportionality arguments into a coherent strategy aimed at reducing the overall level of recoverable costs.

Specialist costs lawyers and law costs draftsmen are frequently instructed to prepare Points of Dispute in complex or high-value costs disputes where the potential reductions may be significant.

For more information about our work in this area see our page on Paying Party Costs Lawyers.

Summary

Points of Dispute are a central feature of detailed assessment proceedings under CPR Part 47. They define the scope of the dispute between the parties and play a key role in determining whether a bill of costs is reduced through negotiation or assessed by the court.

The most effective Points of Dispute focus on the issues most likely to influence the court, including hourly rates, proportionality, delegation and the necessity of the work undertaken.

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