The Civil Procedure Rules 1998

[F1 Basis of assessment E+W

44.3.— (1) Where the court is to assess the amount of costs (whether by summary or detailed assessment) it will assess those costs—

(a) on the standard basis; or

(b) on the indemnity basis,

but the court will not in either case allow costs which have been unreasonably incurred or are unreasonable in amount.

(Rule 44.5 sets out how the court decides the amount of costs payable under a contract.)

(2) Where the amount of costs is to be assessed on the standard basis, the court will—

(a) only allow costs which are proportionate to the matters in issue. Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred; and

(b) resolve any doubt which it may have as to whether costs were reasonably and proportionately incurred or were reasonable and proportionate in amount in favour of the paying party.

(Factors which the court may take into account are set out in rule 44.4.)

(3) Where the amount of costs is to be assessed on the indemnity basis, the court will resolve any doubt which it may have as to whether costs were reasonably incurred or were reasonable in amount in favour of the receiving party.

(4) Where—

(a) the court makes an order about costs without indicating the basis on which the costs are to be assessed; or

(b) the court makes an order for costs to be assessed on a basis other than the standard basis or the indemnity basis,

the costs will be assessed on the standard basis.

(5) Costs incurred are proportionate if they bear a reasonable relationship to—

(a) the sums in issue in the proceedings;

(b) the value of any non-monetary relief in issue in the proceedings;

(c) the complexity of the litigation;

(d) any additional work generated by the conduct of the paying party; F2 ...

(e) any wider factors involved in the proceedings, such as reputation or public importance [F3 ; and]

[F4 (f) any additional work undertaken or expense incurred due to the vulnerability of a party or any witness.]

(6) Where the amount of a solicitor’s remuneration in respect of non-contentious business is regulated by any general orders made under the Solicitors Act 1974 , the amount of the costs to be allowed in respect of any such business which falls to be assessed by the court will be decided in accordance with those general orders rather than this rule and rule 44.4.

[F5 (7) Paragraphs (2)(a) and (5) do not apply in relation to—

(a) cases commenced before 1^st April 2013; or

(b) costs incurred in respect of work done before 1^st April 2013,

and in relation to such cases or costs, rule 44.4.(2)(a) as it was in force immediately before 1^st April 2013 will apply instead.]]

Textual Amendments

F1 Pts. 44-48 substituted (1.4.2013) by The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 16, Sch. (with rule 22)

F2 Word in rule 44.3(5)(d) omitted (6.4.2021) by virtue of The Civil Procedure (Amendment) Rules 2021 (S.I. 2021/117), rules 1(1), 11(1)(a)

F3 Word in rule 44.3(5)(e) inserted (6.4.2021) by The Civil Procedure (Amendment) Rules 2021 (S.I. 2021/117), rules 1(1), 11(1)(b)

F4 Rule 44.3(5)(f) inserted (6.4.2021) by The Civil Procedure (Amendment) Rules 2021 (S.I. 2021/117), rules 1(1), 11(1)(c)

F5 Rule 44.3(7) substituted (1.4.2013) by The Civil Procedure (Amendment No.2) Rules 2013 (S.I. 2013/515), rules 2, 5