Understanding Civil Procedure Rule 47

Civil Procedure Rule (CPR) 47 governs the process of detailed assessment of legal costs. When parties are unable to reach an agreement on costs, CPR 47 provides a framework for the Court to formally assess and determine them. Specifically, CPR 47.8 outlines the consequences that may arise if a Bill of Costs is not served within the time limits prescribed under CPR 47.7

Timely Service of the Bill of Costs

When a party secures a costs order in their favour – whether by succeeding in litigation under CPR 44.2(2)(A) or by way of a deemed costs order under CPR 44.9 (such as acceptance of a Part 36 offer or filing a Notice of Discontinuance) – they are entitled to recover costs from the opposing party. In such cases, they must prepare and serve a compliant Bill of Costs.

CPR 37.7 requires that the Bill of Costs, along with the Notice of Commencement, be served within three months of the date of the costs order or the triggering event. This step formally commences detailed assessment proceedings.

Failure to meet this deadline can result in a sanction for delay in commencing detailed assessment under CPR 47.8. Whilst the rules do not provide an absolute time limit beyond the three-month window, there is judicial discretion to suggest the Court may disallow a Bill served after a significant delay.

Potential Sanctions Under CPR 47.8

The sanctions imposed for delayed service of a Bill of Costs depend largely on whether the Paying Party takes action. In many instances, the Paying Party may choose not to raise the delay, either to retain funds for longer or in the belief that the costs entitlement has been abandoned. However, CPR 47.8 exists to prevent Receiving Parties from evading consequences for non-compliance.

Applications Made Under CPR 47.8(1)

Should the Receiving Party fail to serve the Bill within the prescribed three-month period, the Paying Party may apply for an “Unless order” requiring the Receiving Party’s claim for costs to be stuck out. Such applications must be made on notice – covert or ‘stealth’ applications are contrary to the spirit of the overriding objective and may result in cost penalties for the applicant.

If proper notice is given of the intention to apply for an order, and no Bill of Commencement is forthcoming, the Court may order service of the Bill within a set timeframe, failing which the entire claim for costs may be dismissed under CPR 47.8(2). Courts generally allow a short extension – typically 14 to 21 days – during which the Bill must be served. If the order is not complied with, the claim may be struck out entirely, and the Paying Party is often awarded their application costs on a summary basis.

Late Service Without a Prior Application

In many higher-value or more complex cases, parties may informally agree to an extension for serving the Bill of Costs. Even absent such an agreement, late service is not unusual.

Where a Receiving Party serves a Bill after the three-month limit, but no application has been made, CPR 47.8(3) allows the Court to reduce interest on the costs for the period of delay. This reduction is discretionary and will depend on the circumstances, including whether there were ongoing negotiations or other reasonable explanations for the delay.

Paying Parties typically raise this issue in their Points of Dispute, often as a Preliminary Point, citing relevant provisions such as (i) section 17 of the Judgements Act 1838 or (ii) section 74 of the County Courts Act 1984. Importantly, unless there is reason to require the use of CPR 44.11 powers in relation to misconduct, no further sanctions apply, and the assessment process proceeds as normal.

Strategic Considerations for Legal Practitioners

Both Receiving and Paying Parties should view the timelines under CPR47.7 and 47.8 not only as procedural obligations but as strategic tools within the broader costs recovery process. For Receiving Parties, proactive compliance with the three-month deadline signals professionalism and avoids unnecessary complications, such as interest reductions or the risk of a costs claim being struck out. Where delay is anticipated, open dialogue with the Paying Party and documented agreements can help avoid formal applications and associated costs.

Conversely, for Paying Parties, monitoring the opposing party’s compliance can offer a tactical advantage. If the Bill of Costs is not served within the specified timeframe, a timely application under CPR 47.8 can result in substantial leverage – potentially leading to the dismissal of the claim of reduced financial liability. However, practitioners must exercise caution and follow proper notice procedures to avoid criticism from the Court or adverse cost orders.

Ultimately, a clear understanding of CPR 47.8 can influence both negotiation dynamics and the outcome of the detailed assessment, underscoring the value of specialist support in this technical area of costs law.

How Our Costs Experts as Greener Costs Can Help

Our team of experienced costs draftsmen provides specialist support for both Receiving and Paying Parties with any part of the costs process.

For Receiving Parties, we ensure compliance with the preparation and timely service of Bills of Costs under CPR 47, including cases affected by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LAPSO), where recovery of additional liabilities is restricted. We also offer urgent assistance in responding to unless orders, ensuring service of the Bill within the 14-21 day window often imposed by the Court.

For Paying Parties, we can assess the viability of making an application under CPR 47.8 and represent your interests throughout the detailed assessment process – from drafting Points of Dispute to negotiating cost settlements.

Where resolution cannot be achieved, we can assist in requesting a detailed assessment hearing and provide full representation.

To discuss how we can assist with your case, contact our team via our website enquiry form, call us on 01204 263047, or email us at info@greenercosts.co.uk.