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Left Shortchanged by Short Form Bills?

Left Shortchanged by Short Form Bills?

What are short form bills of costs? When are they used? Are they friend or foe?

Short form bills of cost are prepared when the profit costs claimed do not exceed £3,000 (excluding any disbursements, counsel’s fees, and VAT). Short form bills were to be, by definition, short, simple to prepare, and lacking the detailed information contained in a detailed bill of costs. You may be wondering whether you require the services of a costs draftsman or costs lawyer to prepare such a document?

Given the limited level of profit costs that can be claimed in a short form bill, the number of short form bills prepared is low. Usage is further limited when fixed costs come into play. Further to Practice Direction 19B (Fixed Costs and Deputy Renumeration in the Court of Protection), solicitors appointed as deputies may seek to recover fixed fees for elements of their work undertaken, for example, (where the period covered by the category of costs or renumeration ends on after 01 April 2024), for the first year’s annual management an amount not exceeding £2,116 (plus VAT), or, for the second and subsequent years, an amount not exceeding £1,672 (plus VAT). In other words, for an ongoing general management matter, a short form bill will only likely be prepared where the profit costs fall between £1,672 and £3,000.

Before The Court Fees (Miscellaneous Amendments) Order 2019, the assessment fee was also considerably less for short form bills as opposed to detailed bills (£115 as opposed to £225 at that time). Since the Order, however, the fee for filing has remained the same for filing both short form and detailed bills of costs, currently £96. Arguably, the principal advantage of the short form bill for the deputy and their protected party clients has been lost.

So, what does a short form bill look like? Section27.6 of the Senior Courts Costs Office Guide 2023 refers to the bill of costs format in the Court of Protection and a copy of a model short form bill is given at Appendix AA.  The model bill indicates the information to be inputted in respect of the fee earner(s) undertaking the work and rate(s) claimed. A summary of the work done is expected to be completed in a singular short paragraph. Details of attendance dates, time, and participants are to be included. A total claim figure is to be provided in respect of all letters/ emails and in respect of all telephone calls, negating the need to distinguish between the parties in the case. A total time only is to be included in respect of document items, with no breakdown of the detail of the same. This appears to be a simple solution for recovering limited costs. Indeed, 27.6 of The Senior Courts Costs Office Guide 2023 goes on to say, ‘deputies may use a simplified form of bill which will not require the services of a costs draftsman or costs lawyer’.

At A&M Bacon (Court of Protection Costs Specialists) we continue to prepare short form bills for our clients on a regular basis. In our experience, where conventional short form bills have been prepared, costs recovery is generally less than recovery rates achieved for detailed bills. Arguably, this is due to the lack of detail included in the bill where the format as described above is utilised. Of course, solicitors still have the right to appeal the assessment, however, given the small sums involved, it is often considered by professional deputies disproportionate to do so. Consequently, at A&M Bacon we continue to seek to provide further information in smaller bills to ensure maximum recovery, including a narrative which supports the costs claim in full, and including a breakdown of time spent preparing document items. Section 27.6 of the Senior Courts Costs Office Guidance 2023 states ‘Where the amount of the bill does not exceed £3,000 excluding VAT and disbursements, professional deputies may request the SCCO to assess the costs using a short form bill’. Thus, offering a potential loophole, allowing for some divergence, at least for now, from the model short form bill. The Guidance also states, ‘The costs of drawing a long form bill will not usually be recoverable in cases where a short form bill is appropriate’. In our experience, a one-hour claim for costs in respect of preparing such a bill is recovered (and in exceptional circumstances a little more time may be allowed). In any event, the final bill to our solicitor clients is limited to the costs recovered on assessment.

Further attempts to ‘avoid’ a short form bill, and the pitfalls of the same, may include preparing a single detailed bill which covers more than one general management year, thereby ensuring the total profit costs claimed exceeds £3,000. Alternatively, combining the costs of application work (which are often limited) with the costs of the first year’s general management work can also serve as an effective work around. A further advantage of this is only one assessment fee is payable. The disadvantage may be the effect on cashflow, however, of course, up to 75% of costs incurred can be interim billed. 9.15 15 of Professional Deputy Costs Guidance does cite that it is ‘good practice for the professional deputy to submit their general management bill of costs to the SCCO annually, as close to the end of the annual management year as possible’. In our experience, we have not yet encountered difficulties claiming more than one year’s general management costs in a singular bill.

In conclusion, short form bills are simple bills, only used in limited circumstances, providing a snapshot/ summary of the work undertaken, which can lead to a disappointing recovery of costs. Instructing or seeking the advice of your costs draftsman before preparing such a claim for costs will help to ensure opportunities for greater cost recovery are not lost.

At A&M Bacon we are committed to assisting our clients to maximise their profit cost recoverability in all matter circumstances. For further information or advice in relation to short form bills, or any other Court of Protection matter, please contact us further.

Jenny Walmsley – Court of Protection Costs Specialist

23.10.2024

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