Statement of costs (Form N260): how to prepare one for summary assessment

Summary assessment usually takes place at the end of fast track trials and at hearings lasting no more than one day, unless there is good reason not to assess summarily. Practice Direction 44 requires each party intending to claim costs to prepare a written statement of costs, following Form N260 as closely as possible.

The statement must be filed and served as soon as possible and in any event at least two days before a fast track trial, and not less than 24 hours before the time fixed for any other hearing. Late service does not automatically bar recovery, but the court can take it into account, including by adjourning or reducing the costs allowed. Work to a firm internal deadline so the statement is ready in good time.

Form N260 sets out the fee earners involved, their grades and hourly rates, then time spent on attendances on the client, opponents and others, work done on documents, and attendance at the hearing. Disbursements such as counsel’s fees, court fees and expert fees are listed separately, together with VAT where applicable.

The form must be signed by the party or their legal representative, confirming that the costs do not exceed those the party is liable to pay. That statement links directly to the indemnity principle, so it should be checked rather than signed as a formality.

Judges summarily assessing costs have limited time. They look for rates in line with the guideline hourly rates, sensible delegation, and time that matches the nature of the application. Excessive time on documents, unexplained senior-grade work and duplication between fee earners are frequent targets.

Including costs that belong to another stage of the case, or that have already been dealt with by an earlier order, also undermines confidence. A short schedule of documents work, identifying what was prepared and why, can make it much easier for the judge to accept the time claimed.

The paying party should review the opponent’s N260 as soon as it arrives. Prepare brief, specific objections: rates above guideline without justification, time disproportionate to the hearing, or items outside the scope of the order. Judges respond better to two or three focused points than a general complaint that the figure is too high.

Where the hearing is complex or the sums substantial, consider whether summary assessment is appropriate at all, or whether the court should order detailed assessment with a payment on account. Our Costs Lawyers prepare N260 statements at short notice and can attend hearings where costs are likely to be contested.