Legal costs glossary.

Admissible offer

An offer to settle costs, other than a Part 36 offer, that the court can take into account when deciding who pays the costs of the assessment.

After the event insurance (ATE)

Insurance taken out after a dispute arises to cover the risk of paying the other side’s costs and your own disbursements.

Bill of costs

The document setting out the costs claimed for detailed assessment, usually in electronic format with time recorded by phase, task and activity.

Conditional fee agreement (CFA)

A ‘no win, no fee’ agreement under which the solicitor may charge a success fee if the case is won.

Costs budget (Precedent H)

A forecast of costs for each phase of a multi-track claim, approved or agreed at a costs and case management conference.

Costs and case management conference (CCMC)

A hearing at which the court gives directions and manages the parties’ costs budgets.

Costs in the case

An order meaning whoever is later awarded the costs of the claim also recovers the costs of that particular step.

Costs Lawyer

A specialist legal professional authorised and regulated by the Costs Lawyer Standards Board, with rights of audience in costs proceedings.

Costs draftsman

A traditional, unregulated title for someone who prepares bills of costs and handles costs disputes.

Costs reserved

An order postponing the decision on who pays the costs of a step until a later hearing.

Damages-based agreement (DBA)

A funding agreement under which the lawyer is paid a percentage of the damages recovered.

Default costs certificate

A certificate the receiving party can request if points of dispute are not served in time.

Detailed assessment

The court process for deciding the amount of costs payable when they cannot be agreed, governed by CPR 47.

Disbursements

Expenses paid out in a case, such as court fees, expert fees and counsel’s fees.

Fixed recoverable costs

Set amounts of costs recoverable in many fast track and intermediate track claims, fixed by reference to the track and complexity band.

Guideline hourly rates

Published hourly rates the court uses as a starting point when assessing solicitors’ charges.

Indemnity basis

The more generous basis of assessment: doubts about reasonableness are resolved in the receiving party’s favour and proportionality does not apply.

Indemnity principle

The rule that a receiving party cannot recover more from the paying party than they are liable to pay their own lawyers.

Interim payment

A payment on account of damages or costs made before the final figure is decided.

Notice of commencement

The document (form N252) that starts detailed assessment proceedings, served with the bill of costs.

Part 36 offer

A formal settlement offer with set costs consequences if it is not beaten at trial or on assessment.

Paying party

The party ordered to pay another party’s costs.

Payment on account

A sum the court orders to be paid towards costs before detailed assessment is finished.

Points of dispute

The paying party’s written objections to items in a bill of costs.

Proportionality

The test of whether costs bear a reasonable relationship to the sums in issue, the value of any non-monetary relief, complexity and wider factors.

Provisional assessment

A paper assessment by the court of bills up to £75,000, with a right to request an oral hearing.

Qualified one-way costs shifting (QOCS)

Protection for personal injury claimants that usually limits their liability for a defendant’s costs if they lose.

Receiving party

The party entitled to be paid costs.

Replies to points of dispute

The receiving party’s optional response to the paying party’s objections.

Security for costs

An order requiring a claimant to provide money or a guarantee to protect a defendant’s potential costs.

Solicitor–client assessment

An assessment under the Solicitors Act 1974 of a bill a solicitor has sent to their own client.

Standard basis

The usual basis of assessment: only proportionate and reasonably incurred costs are allowed, with doubts resolved for the paying party.

Statement of costs (N260)

A summary of costs filed before a short hearing so the judge can carry out summary assessment.

Summary assessment

Assessment of costs by the judge at the end of a hearing, rather than by later detailed assessment.

General information only, not legal advice. Our Costs Lawyers are regulated by the Costs Lawyer Standards Board.