When litigation concludes and one party is entitled to recover legal costs, the process for determining those costs can become a point of contention. This is where CPR 47.6, a key provision under Part 47 of the Civil Procedure Rules (CPR), steps in. It outlines how to initiate the Detailed Assessment of costs, ensuring transparency, fairness, and procedural order in resolving cost disputes.

What is CPR 47.6?

CPR 47.6 governs the steps to be taken when a party seeks a Detailed Assessment hearing of legal costs. After a court order for costs has been made or a settlement has been reached, the Receiving Party, the party entitled to the costs, can begin the process to recover the amount of costs they believe is reasonable.

This usually includes solicitor fees, disbursements, and court fees. As per CPR 44.2(2)(a), the usual rule is that the losing party pays the winner’s costs, although CPR 44.2(2)(b) allows the court to depart from this if justified. If the costs cannot be agreed upon between the parties, CPR 47.6 enables the Receiving Party to commence Detailed Assessment proceedings to resolve the issue formally.

When Does CPR 47.6 Apply?

There are several scenarios where CPR 47.6 becomes applicable:

• The amount of costs recoverable is disputed and cannot be agreed.
• The matter settles via a Part 36 Offer, or a non-Part 36 agreement formalised through a Tomlin Order, allowing for assessment of costs.
• The court orders a detailed (rather than summary) assessment of costs.
• One party seeks to file a Notice of Commencement in Form N252 to trigger formal assessment.

In such situations, if the Receiving Party delays or fails to take action, the Paying Party may apply for an unless order, or seek to strike out the claim for costs altogether.

Key Steps in the CPR 47.6 Process

1. Preparing the Bill of Costs

The process begins with the Receiving Party drafting a Bill of Costs, a comprehensive breakdown of legal fees and disbursements incurred throughout the case. The breakdown of the costs must be detailed and, for multi-track cases, include electronic bills that identify costs claimed for each phase of litigation in line with any approved Costs Budget.

2. Serving the Notice of Commencement

The Receiving Party must then obtain a Notice of Commencement in Form N252 and serve it, along with the copies of the bill, to formally begin proceedings. This stage is critical in commencing Detailed Assessment proceedings and puts the Paying Party on notice.

Under Practice Direction 47, the following must accompany the notice:

• Authority for assessment (court order or Part 36 offer/acceptance);
• A complete Bill of Costs
• Supporting vouchers (e.g., Counsel’s fee notes);
• Signed certificate verifying the accuracy of the bill;
• Precedent S summary (for multi-track matters).

Failing to file a Notice of Commencement within three months of entitlement to costs may result in serious consequences, including an unless order or the potential disallowance of all costs.

3. Responding with Points of Dispute

Once served, the Paying Party has 21 days to either:

• Agree to the amount of costs claimed;
• Challenge specific items via Points of Dispute;
• Take no action, which allows the Receiving Party to apply for a Default Costs Certificate.

The acceptance of the Bill of Costs by serving Points of Dispute is the standard method of contesting a claim. Common objections include excessive hourly rates, duplication, or disproportionate work. If Points of Dispute are not filed in time, the Receiving Party can secure the full amount uncontested through a Default Costs Certificate.

4. Replies to Points of Dispute

Although not mandatory, the Receiving Party should respond to any Points of Dispute with formal Replies, ideally within 21 days. This ensures both parties’ positions are clear, especially if the matter proceeds to a hearing.

Replies defend the costs claimed, explaining why each item is reasonable and proportionate. Without them, the court may disallow claims unchallenged due to a lack of justification.

5. The Detailed Assessment Hearing

If costs remain disputed, a Detailed Assessment hearing is scheduled. The court will:

• Evaluate the Bill of Costs and supporting documents.
• Review the Points of Dispute and Replies
• Decide which costs are reasonable and proportionate.

There are two types of hearings:

• Provisional Assessment: For bills under £75,000. No attendance is required. Costs capped at £1,500 + VAT + court fee.
• Attended Assessment Hearing: For larger or complex matters. These can span days and incur significant costs, sometimes exceeding £10,000.

In some cases, the Paying Party may apply to contest procedural missteps, including setting aside a Notice of Commencement if it was served incorrectly.’

The Role of Misconduct in Costs Recovery

Under CPR 44.11 powers in relation to misconduct, the court may penalise either party if there is evidence of reasonable or dishonest conduct during the costs process. This may include inflating costs, failing to engage in negotiations, or other abusive behaviour.

Greener Costs: Supporting Firms Through the Assessment Process

At Greener Costs, we regularly work with law firms and in-house legal teams navigating the CPR 47.6 process. From early-stage advice through to drafting, negotiation, and representation at hearings, our costs drafting team brings clarity and confidence to the often complex process of recovering legal costs.

Our clients have successfully:

• Negotiated improved settlements after service of well-drafted Bills of Costs;
• Avoided Default Costs Certificate risks by staying on top of timelines;
• Overcome procedural challenges by quickly commencing Detailed Assessment proceedings in full compliance with the rules;
• Resolved disputes before hearings, reducing exposure and litigation costs.

Whether you need help preparing the Bill of Costs, replying to Points of Dispute, or ensuring that the Notice of Commencement is served correctly, our experienced costs consultants are here to support you at every step.

Contact Greener Costs Today

Understanding and applying CPR 47.6 correctly is essential in securing the best outcome in legal costs recovery. From drafting the Bill of Costs to ensuring proper commencement of Detailed Assessment, having a specialist partner on your side can make all the difference.

At Greener Costs, we offer a full suite of legal costs services to help your firm recover efficiently, compliantly, and strategically. Whether you’re preparing to file a Notice of Commencement, dealing with a threat of default, or responding to Points of Dispute, we’re here to guide you.

Our services include:

• Drafting detailed and accurate Bill of Costs, outlining the amount of costs claimed for each phase;
• Ensuring compliance in commencing Detailed Assessment proceedings, including timely service and response handling;
• Advising when the court may disallow items and mitigating risks of reduction;
• Responding to or defending Points of Dispute and misconduct allegations under CPR 44.11;
• Applying for a Default Costs Certificate where no timely response is received;
• Representing you at a Detailed Assessment hearing and managing complex negotiations.

We also advise on procedural challenges, including when the Paying Party may apply for setting aside a Notice of Commencement, or raise concerns requiring the Receiving Party to remedy errors.

Contact Greener Costs at info@greenercosts.co.uk, 01204 397302 to find out more about how we can help your firm navigate every stage of the costs process, confidently, compliantly, and with the best chance of maximising recovery.