We recently dealt with a case for a paying party where there was an inexcusable delay by the receiving party in commencing Detailed Assessment proceedings and requesting a Provisional Assessment.  The Points of Dispute requested that interest be disallowed during the delay period; the Replies made no concession on the delay.  The Costs Officer was not prepared to deal with disallowance of interest on Provisional Assessment, citing Rule 47.3(b) (ii) as his reason for not doing so.  The receiving party therefore obtained a windfall.

CPR 47.3 states: (1) an authorised Court Officer has all the powers of a Court when making a Detailed Assessment, except:-

(a)     Power to make a Wasted Costs Order as defined in Rule 46.8;
(b)     Power to make an Order under:-

(i) Rule 44.11 – powers in relation to misconduct.
(ii) Rule 47.8 – sanction for delaying commencing Detailed Assessment proceedings.
(iii) Paragraph (2) – objection to Detailed Assessment by an authorised Court Officer.

(c)     Power to make a Detailed Assessment of costs payable to a Solicitor by that Solicitor’s client, unless the costs are being assessed under Rule 46.4 (costs where money is payable to a child or protected party).

Accordingly, when dealing with the recovery of costs that is likely to be assessed by a Court Officer, receiving parties may not wish to concede interest due to delay in their Replies.

As this particular matter concerned a relatively small Bill of Costs, the client did not pursue the matter further, but it must be remembered that Senior Executive Officers have the power to deal with Bills of Costs up to £35,000.00, excluding VAT, and Principal Costs Officers up to £110,000.00, excluding VAT, and on such Bills of Costs, the accrued interest could have been more significant.

CPR 47.3(2) provides where a party objects to the Detailed Assessment of costs being made by an authorised Court Officer, the Court may order it to be made by a Costs Judge or a District Judge.

Paying parties should consider therefore requesting such Bills of Costs to be assessed by a Costs Judge if a point is taken on delay.

For further information regarding the above or any costs related topic, please do not hesitate to contact Aestima.