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Bill of costs: unpaid disbursements

Question

Can a bill of costs include unpaid disbursements?

Answer

Yes, but only if the unpaid disbursements are described in the bill as not yet paid. The deficiency can lead to difficulties to these items if they are challenged on a later assessment. One solution in such an instance would be to ask the costs judge for an adjournment, apply to the court for leave to withdraw the entire bill and redeliver it (but there is a risk that you may be ordered to pay all the costs thrown away) and deliver a fresh bill, Solicitors act 1974, s67. It should be noted that in Tearle & Co v Sherring (29 Oct 1993, unreported, QBD), Wright J held that where a solicitor has acted in good faith but has inadvertently omitted to describe the disbursements as unpaid, the court not only had the power to give him leave to withdraw his bill and deliver another one, to save costs it could in an appropriate case give leave to amend his bill by adding the words 'unpaid'. However, you should err on the side of caution and describe unpaid disbursements as 'unpaid' in the bill.

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Disclaimer

While every effort has been made to ensure the accuracy of the information provided by the Practice Advice Service, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.

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