Fighting Unfair Costs: How to Challenge Legal Fees Effectively
In litigation, winning the case is only half the battle. The other half often comes later—when the final Bill of Costs lands. For paying parties, that bill can feel overwhelming, especially when it appears inflated, poorly justified, or out of proportion with the case itself.
Fortunately, legal costs are not immune from challenge. When assessed on the standard basis, any doubts about whether costs were reasonably or proportionately incurred will be resolved in favour of the paying party. This gives paying parties the chance to push back against excessive claims—provided they know what to look for.
This guide outlines the key tactics used by law costs experts to challenge unfair costs and secure a more reasonable outcome.
1. Start with the Basics: Is the Retainer Valid?
Before diving into specific entries on a Bill of Costs, start by asking whether the receiving party has the right to recover costs at all. That begins with the retainer—the legal agreement between solicitor and client.
Costs aren’t payable inter partes unless there’s a valid retainer in place. Areas of concern might include:
- A lack of documentation or clarity
- A transfer from legal aid to a CFA (Conditional Fee Agreement)
- Assigned CFAs that may not comply with requirements
If any irregularities are suspected, it’s reasonable to request further information. Be careful to stay focused—broad, speculative demands could be dismissed as “fishing expeditions.”
2. Check Every Costs Order
The next step is to scrutinise all orders made during proceedings. Some may explicitly limit or exclude costs for particular applications or stages. Look out for:
- “No order as to costs” – no party can recover.
- “Costs in the application” – cost liability deferred.
- Silent orders – may signal that no costs were awarded.
If any part of the claim was subject to an order that limits recovery, that portion of the Bill should be challenged. Cross-referencing the Bill against the case file is essential here.
3. Deploy Proportionality Arguments
Costs must be not just reasonable but proportionate. Many paying parties make the mistake of focusing solely on the financial value of the claim. In fact, CPR 44.3(5) lists several factors that should be considered when assessing proportionality, including:
- The complexity of the issues
- The conduct of the parties
- The importance of the matter
- Any non-monetary relief
- The financial positions of the parties
If the case involved relatively straightforward issues or limited sums, these arguments can support a reduction. As always, the burden is on the receiving party to justify the costs—not the other way around.
4. Examine Hourly Rates and Delegation
One of the most common causes of excessive legal bills is inefficient delegation. If a partner is charging high hourly rates for tasks that could be handled by a junior solicitor or paralegal, you have grounds to object. Look for:
- A disproportionate number of hours by Grade A fee earners
- Routine tasks performed by senior staff (e.g. drafting letters, arranging conferences)
- No evidence of delegation strategy
Where costs haven’t been properly managed, you can argue for a reduction to reflect what a more proportionate staffing model would have cost.
5. Flag Duplicate Costs from Fee Earner Changes
Changes in solicitors or counsel during the case often lead to duplicated work, such as reading into the file or repeating steps already taken. These transitions may result in extra hours being claimed—but unless there’s a good reason, the paying party shouldn’t foot the bill.
Unless the change was unavoidable (e.g. illness or departure), it may be fair to dispute any associated costs, especially where the receiving party could have minimised disruption.
6. Push Back on Delays in Commencing Assessment
Under CPR 47.7, the receiving party must commence detailed assessment proceedings within three months of the order or judgment. If they miss this deadline without good reason, the paying party can object to the continued accrual of interest on costs.
In higher-value cases, this delay can make a notable financial difference. Where there’s unjustified lateness, it’s worth arguing for a reduction in interest—if not its full disallowance.
7. Criticise Poorly Drafted Bills
A sloppy Bill of Costs can be a red flag—and a useful point of challenge. If the Bill is unclear, disorganised, or makes it difficult to identify what has been claimed and why, it can warrant closer scrutiny or even a reduction in preparation costs. Where the Bill includes:
- Mislabelled phases or tasks
- Double-counted time
- Costs with no clear justification
- Vague or generic descriptions
You may wish to challenge the drafting quality itself, particularly if the costs of preparing the Bill are high.
8. Prepare Strong Points of Dispute
Your Points of Dispute are your best opportunity to state your case. Under Practice Direction 47, they should be “short and to the point,” but that doesn’t mean generic or vague.
Avoid boilerplate objections and instead:
- Tailor each point to the case and costs claimed
- Focus on significant items first
- Back your objections with CPR references or precedent
9. Make a Reasonable Settlement Offer Early
Finally, don’t wait for the assessment hearing to offer a compromise. If the receiving party fails to beat your offer, you could recover the costs of the assessment proceedings, even as the paying party.
Early offers—particularly before the receiving party drafts their Points of Reply—can demonstrate a genuine desire to settle and protect your position on costs.
Strategic Scrutiny Leads to Real Savings
Fighting unfair costs isn’t about challenging every line on the Bill—it’s about knowing where to focus. By understanding the rules around retainers, proportionality, delegation, and costs orders, you can build a targeted challenge that reduces liability without wasting time.
With the right strategy and attention to detail, paying parties can ensure that they only pay what is fair, reasonable, and legally justified—not a penny more.