“Reasonable Legal Costs”: What can be Claimed?

What are “Reasonable Legal Costs”?

This is a subjective question, and turns upon the facts of any specific case and what basis of assessment is to apply.?

When assessing legal costs on the standard basis, the term “reasonable legal costs” refers to the costs incurred by the winning party that are both justified and proportionate in relation to the work done and the complexity of the case.

These costs are subject to scrutiny by the Court to ensure that they are fair and reasonable given the circumstances of the litigation. The assessment of reasonable costs on the standard basis involves evaluating various factors to determine whether the costs claimed are appropriate and justifiable.

?

A good starting point is to consider the factors set out in CPR 44.4(3), often referred to as the “pillars of wisdom” however, common factors to take into account include:

• Justification: Reasonable legal costs should be directly related to the work performed in the case. This includes tasks such as legal research, document drafting, court appearances, and communication with clients and opposing parties. Costs that are not directly connected to advancing the case may not be considered reasonable.
• Proportionality: The costs claimed must be proportionate to the value and complexity of the case. This means that the costs should not be excessively high in relation to what is at stake or the complexity of the legal issues involved.
• Necessity: The costs must be necessary for the proper conduct of the case. This involves considering whether the work performed was reasonable and required to achieve the desired outcome.
• Conduct of the parties: The behaviour and conduct of both parties during the litigation can impact the assessment of costs. If a party’s behavior has caused unnecessary delays or complications, it might affect the reasonableness of the costs they can recover.
• Guideline hourly rates: The court will consider the Guideline Hourly Rates when determining the reasonableness of rates charged for items such as providing legal advice and time spent working on the case.? Uplift on these rates is possible, but only in circumstances where it is justified.? The Court will also take into account the appropriate Grade of file handler that should have handled the proceedings.
• Type of work: The nature of the legal work performed can influence the reasonableness of the costs.
• Level of expertise: The experience and expertise of the legal professionals involved can impact the assessment.? If there is heavy reliance upon Counsel, then this is likely to impact on how much costs can be claimed by the Solicitor.
• Transparency and evidential documentation: The winning party should provide clear and transparent documentation of the work performed and the corresponding costs. Detailed records help demonstrate the reasonableness of the costs claimed and on any detailed assessment, a Judge may require inspection of any such documents to justify the work/time claimed.?

To find out more, read the full article on our website.

How can ARC Costs Assist?

Our team of Costs Draftsman and?Costs Lawyers can be relied upon to provide a multitude of expert costs services. Whether you need assistance with a standard basis costs, indemnity basis costs, or fixed costs dispute, we can help. We offer our services to both law firms and litigants in persons, and as independent experts we can be instructed by either of the Paying or Receiving Parties in any costs dispute.

Depending on what is necessary for your case, we can prepare comprehensive?Bills of Costs,?Costs Budgets?and?Points of Dispute, alongside other costing instruments, ensuring reasonable legal costs are recovered.?

If you would like to find out more about how we can help you, please telephone us at?01204 397302?or email an expert directly at?[email protected].