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Litigation Letter

Agreeing Costs

It has been suggested that judges should not rubber stamp agreed orders for costs lest solicitors should agree with each other excessive and disproportionate amounts. Apart from the practical difficulty of a judge trying to unravel an amount for costs agreed after negotiation, the suggestion is contrary to the philosophy of the CPR of encouraging the parties to resolve their differences which is embodied in the Costs Rules and Practice Directions. Practice Direction 4.10 to Rule 44.7 disapplies the summary assessment provisions where ‘the parties have agreed the amount of costs’ and Rule 47.10 with its supporting Practice Direction prescribes the procedure to be followed on a detailed assessment where the costs are agreed. Additionally, Rule 4.4 (3) actually requires that parties who agree an order without wishing to attend on a hearing must either agree there is to be no order for costs or ‘agree a figure for costs to be inserted in the consent order’.

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