26.06.09: 2 very good reasons why you should instruct us to prepare your statements of costs

1. Pursuant to the ruling in Leigh v Michelin Tyres, the Civil Procedure Rules were amended so as to legislate for cases where a statement of costs differs from the final Bill of costs (by 20%). If your statement of costs proves to be inaccurate, the Court can draw adverse inferences when assessing your claim for costs – see CPR Costs Practice Direction 6.6 (2).

2. CPR Part 47.18 (1) (b) enables the Court to stray from the usual practice of awarding the receiving party its costs. CPR Costs Practice Direction 13.5 confirms inter alia that any party seeking costs at a hearing should prepare in form N260 a statement of costs in readiness for summary assessment. In the event of default, the Court, pursuant to CPR Costs Practice Direction 13.6 may penalise you in costs.

 

In recent times, we have seen several examples of Courts making future costs orders pursuant to their powers conferred by Costs Practice Direction 13.6. In each case the Court has disallowed future detailed assessment costs because the costs statements files were “inadequate”. We should emphasise that in none of these cases had we prepared the statements of costs.

Incidentally, PD 13.6 is expressly intended to punish defaults (not inadequacies). Therefore, in our view, the Court is acting ultra vires however until one of these orders is appealed, the trend will no doubt continue.

 

Further, the alleged “inadequacies” arise as a result of the form of the N260. This is a Court designed form and so it is a little more than ironic that solicitors are being punished because they have used an inadequate format (which the Court rules compel them to do).

In summary, preparing a statement is not a simple letter count. Nor can you give the Court a breakdown of your work in progress (WIP) figure. We will anticipate what type of costs statement is required because, very clearly, the Court is harshly and unfairly penalising receiving parties if they do not have their statement of costs in absolutely perfect order.