{"id":189973,"date":"2024-08-21T02:55:53","date_gmt":"2024-08-21T01:55:53","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=189973"},"modified":"2024-08-21T02:55:55","modified_gmt":"2024-08-21T01:55:55","slug":"statement-of-costs","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/statement-of-costs\/","title":{"rendered":"What is a Statement of Costs?"},"content":{"rendered":"\n<p>When you own a business, you can encounter problems, such as a commercial dispute with another business or a customer. Although you should try to resolve this using an <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/alternative-dispute-resolution-in-england-wales\/\">alternative dispute resolution<\/a> (ADR) method, court proceedings can sometimes be the only effective way of reaching a solution. Since litigation can be time-consuming and expensive, you will want to prepare a statement of costs detailing your total costs. These costs include any potential recoverable costs, such as counsel&#8217;s fees. This article will explain statements of costs and how you can complete and submit one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Statement of Costs?<\/h2>\n\n\n\n<p>A statement of costs is a document that all parties to <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/disputes-commercial-court\/\">commercial litigation<\/a> must serve on the court to break down the costs of their legal proceedings. This statement is important because it enables the court to make a summary assessment of costs at the end of your matter.\u00a0<\/p>\n\n\n\n<p>Therefore, if you intend to claim your legal expenses from going to court, serving the statement of costs is essential. Importantly, you must do so at least 24 hours before the court hearing is due to take place.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Should a Statement of Costs Include?&nbsp;<\/h2>\n\n\n\n<p>When you complete a statement of costs, it is helpful to use <a href=\"https:\/\/www.gov.uk\/government\/publications\/form-n260-statement-of-costs-summary-assessment\">Form N260<\/a>. Whilst this is not a legal requirement, if you do not use it, your statement of costs should closely follow it. Your legal representative will sign your statement of costs for you and if you do not have one, you will have to sign it. Nonetheless, whenever your business is involved in court litigation, you are strongly advised to get legal advice from a dispute solicitor.\u00a0<\/p>\n\n\n\n<p>A statement of costs should include the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how many hours you are claiming;<\/li>\n\n\n\n<li>what the hourly rate is;<\/li>\n\n\n\n<li>the grade of the fee earner;<\/li>\n\n\n\n<li>costs for the solicitor to attend the court hearing;\u00a0<\/li>\n\n\n\n<li>costs for counsel to participate in the court hearing;<\/li>\n\n\n\n<li>additional disbursements you wish to claim;<\/li>\n\n\n\n<li>the cost of the additional disbursements;<\/li>\n\n\n\n<li>any amount of Value Added Tax (VAT) you intend to claim.<\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div 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Importantly, unless you have a reasonable excuse for not doing so, the court will consider this specifically when deciding any <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/costs-orders-uk\/\">order for the costs<\/a> of the:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>court claim;<\/li>\n\n\n\n<li>hearing;<\/li>\n\n\n\n<li>application;<\/li>\n\n\n\n<li>any further hearing<\/li>\n\n\n\n<li>any detailed assessment hearing<\/li>\n<\/ul>\n\n\n\n<p>These considerations highlight the potential delays or other negative ramifications that come from you not submitting you statement on time. If you fail to comply with the given timeframe, the other party may argue you should be liable for the costs of those consequences. This could mean paying the costs of pauses in proceedings (court adjournment) or a detailed assessment by the court.\u00a0<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>The Practice Directions (PD) within the Civil Procedure Rules (CPR) detail the consequences of non-compliance.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is Advocacy by Ambush?<\/h2>\n\n\n\n<p>Advocacy by ambush is where a party produces the statement of costs when the judge decides on costs rather than serving it 24 hours before the hearing. This is unfair on the other party as they have not seen the costs statement in advance to consider it and prepare any relevant argument. However, the party carrying out advocacy by ambush would have seen the other party\u2019s cost statement.&nbsp;<\/p>\n\n\n\n<p>Carrying out advocacy by ambush can result in not being allowed your costs even if you were the successful party in the court litigation.&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/09\/06011109\/manage-business-dispute.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">How to Manage a Business Dispute<\/div>\n            <div class=\"body-text\">\n                <p>This fact sheet outlines how your business can manage a dispute.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/09\/06010043\/LegalVision-Dispute-Resolution-Factsheet.pdf\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>If your business is part of a commercial dispute, you could end up in court proceedings. Litigation should, however, be a last resort in a business disagreement. If you are part of a court case and want to claim costs, you must complete a statement of costs and produce it at least 24 hours before your hearing. A statement of costs is required so that the court can perform a summary assessment of costs to make a costs order at the end of legal proceedings. The consequences of not completing a statement of costs correctly and on time without a reasonable excuse can harm your ability to reclaim your legal costs.<\/p>\n\n\n\n<p>If you need help understanding statements of costs in the UK, LegalVision\u2019s experienced <a href=\"https:\/\/legalvision.co.uk\/services\/disputes-litigation\/\">disputes and litigation solicitors<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1724204780070\"><strong class=\"schema-faq-question\"><strong>What should I include in my statement of costs?<\/strong><\/strong> <p class=\"schema-faq-answer\">If you fill out your statement of costs with Form N260, it will contain all of the relevant information you should complete. However, if you are not using this form, then you should outline how many hours you are claiming and the rate, the costs for your legal representatives (solicitors, counsel, etc) to participate in the hearing, additional disbursements you wish to claim, the cost of the additional disbursements and any amount of Value Added Tax (VAT) you intend to claim.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1724204796553\"><strong class=\"schema-faq-question\"><strong>When do I need to serve my statement of costs?<\/strong><\/strong> <p class=\"schema-faq-answer\">You must serve your statement at least 24 hours prior to your hearing date.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"488c9024c8\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/189973\" \/>            <input value=\"https:\/\/legalvision.co.uk\/disputes-litigation\/statement-of-costs\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is a Statement of Costs?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you own a business, you can encounter problems, such as a commercial dispute with another business or a customer. Although you should try to resolve this using an alternative dispute resolution (ADR) method, court proceedings can sometimes be the only effective way of reaching a solution. Since litigation can be time-consuming and expensive, you<a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/statement-of-costs\/\">Continue reading <span class=\"sr-only\">&#8220;What is a Statement of Costs?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3200,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"178160,175297,174715,187272,182207,187113","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[26],"tags":[20,39,670,2122],"class_list":["post-189973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disputes-litigation","tag-small-business","tag-business-dispute","tag-litigation","tag-statement-of-costs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Statement of Costs? 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