“Costs as between party and party are again given by the law as an indemnity to the person entitled to them: they are not imposed as a punishment on the party who pays them, nor given as a bonus to the party who receives them. Therefore, if the extent of the indemnification can be found out, the extent to which costs ought to be allowed is also ascertained (Harold v Smith 1860)

(a) The Hourly Rate
" Was it reasonable for this client to instruct that solicitor to conduct this litigation in that court"
Wraith v Sheffield Forgemasters 1996 TLR 20
Truscott v Truscott Court of Appeal September 1997
Sullivan v Co-Operative Insurance Society CA TLR 19.5.99
Chappell v De Bora's of Exeter SCCO No. 3 2004

(b) Court Guidelines
The provence and use "...to assist Judges who were faced for the first time with the task of summary assessment..."

The Guide makes clear:
"...no more than a guide line and a starting point for Judges carrying out summary assessment....The Guide is intended to be of help and assistance to Judges but is not intended as a substitute for the proper exercise of their discretion having heard argument on the issues to be decided"

The Right Honourable
The Lord Phillips of Worth Matravers
Master of the Rolls

(c) Grades of Fee Earners
1. Solicitors over eight years post qualification, including at least eight years qualification experience.
2. Solicitors and legal executives with over four years post qualification experience including at least four years litigation experience.
3. Other solicitors and legal executives and fee earners of equivalent experience.
4. Trainee solicitors, para legals and other fee earners.

N.B. "Legal Executive" means a fellow of the Institute of Legal Executives. Those whom are not fellows are not entitled to call themselves Legal Executives and in principle are therefore not entitled to the same hourly rate.

(d) Mark Up
CPR 44.5: consider the 8 factors to determine recovery rate.
Higgs v Camden & Islington Health Authority 2003 EWHC 15 (QB)
Anita Grambrone & Others v JMC Holidays Ltd 2002 EWHC 495 (QB0
Ross v Stonewood Securities 2004 EWHC 2235 (CH)

(e)Care letters: Rule 15
Has the client been advised of the charging rate.
"An express agreement is necessary if a client is to be charged a higher rate per hr than that likely to be obtained on detailed assessment
Joseph v Boyd Hutchinson Butterworth Law Direct 16.01.01(CLD)

See also CPR 48.8 solicitors cannot recover on a solicitor/client detailed assessment more than the amount "allowable inter partes" unless rules of court permit otherwise.

(f)Estimates and Rule 15
Accuracy is the watchword.
We undertake schedule preparation from commencement; advising solicitor/client.
Inter partes, for hearings; allocation; listing and summary assessments
Cautionary tales: the courts are beginning to take a stronger line; particularly if a paying party is able to show reliance on a costs estimate when pitching a Part 36 or other settlement proposals, to include an agreement to pay costs.
Solicitor/client and inter partes:

Wong v Vizards 1997 2 costs LR 46
Islington and Shoreditch Housing Association v Beechcroft Wansbroughs SCCO 12.03.02
Long Eaton Plant Hire Ltd v Nelsons SCCO 28.08.02
Garbutt v Edwards 2005 EWCA CIV 1206
Leigh v Michelin Tyres 2003 EWCA 1766

(g) Cost Only Proceedings
CPR 44.12A

(i) Settle first as a condition precedent to other terms of settlement.
"The Defendant agrees to pay Claimant's costs on a standard basis, to be detailed assessed under CPR 44.12A if not agreed"
(ii) Procedures Bensusan v Freedman 20.09.01
(iii) Part 8 claim form

(h) Proportionality
CPR 44.5
Home Office v Lownds 2002 EWCA CIV 365