Costs orders relating to funding arrangements44.3A

1

The court will not assess any additional liability until the conclusion of the proceedings, or the part of the proceedings, to which the funding arrangement relates.

• (“Funding arrangement” and “additional liability” are defined in rule 43.2)

2

At the conclusion of the proceedings, or the part of the proceedings, to which the funding arrangement relates the court may—

a

make a summary assessment of all the costs, including any additional liability;

b

make an order for detailed assessment of the additional liability but make a summary assessment of the other costs; or

c

make an order for detailed assessment of all the costs.

• (Part 47 sets out the procedure for the detailed assessment of costs)

Limits on recovery under funding arrangements44.3B

1

A party may not recover as an additional liability—

a

any proportion of the percentage increase relating to the cost to the legal representative of the postponement of the payment of his fees and expenses;

b

any provision made by a membership organisation which exceeds the likely cost to that party of the premium of an insurance policy against the risk of incurring a liability to pay the costs of other parties to the proceedings;

c

any additional liability for any period in the proceedings during which he failed to provide information about a funding arrangement in accordance with a rule, practice direction or court order;

d

any percentage increase where a party has failed to comply with—

i

a requirement in the costs practice direction; or

ii

a court order,

to disclose in any assessment proceedings the reasons for setting the percentage increase at the level stated in the conditional fee agreement.

2

This rule does not apply in an assessment under rule 48.9 (assessment of a solicitor’s bill to his client).

• (Rule 3.9 sets out the circumstances the court will consider on an application for relief from a sanction for failure to comply with any rule, practice direction or court order)