Litigant in person costs—financial loss and hourly rates

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Litigant in person costs—financial loss and hourly rates
  • Level of costs recovery—the two-thirds rule
  • Proving financial loss—requirements
  • Proving financial loss—evidence
  • Proving financial loss—measure of time
  • Measure of time for solicitor-LIPs
  • Measure of time for ordinary LIPs
  • Proving financial loss—hourly rates
  • LiPs
  • Solicitors not LIPs
  • More...

Litigant in person costs—financial loss and hourly rates

CPR 46.5(4) sets out how the costs will be calculated and this is either by reference to:

  1. proven financial loss, or

  2. the amount for the time reasonably spent on doing the work at a fixed rate, currently £19 per hour (CPR PD 46, para 3.4)

Level of costs recovery—the two-thirds rule

Costs recovery is available for:

  1. costs that fall into the same categories of work and disbursements that a legally represented applicant could recover, and

  2. payments in relation to legal services and expert assistance

However, where the litigant in person (LIP) succeeds in being compensated for proven losses or obtaining costs on the hourly rate basis, the total amount recoverable (excluding disbursements) will be limited to two-thirds of the reasonable amount which would be payable to a notional lawyer (CPR 46.5(2)). This is reflected in the prohibition against litigants receiving profit as part of their costs (Campbell v Campbell). In Campbell, Chief Master Marsh explained that a profit element is automatically built into solicitors' costs and the limiting on recovery to two-thirds of those notional costs is intended to remove this element. For an insight into the issues in this case, see News Analysis: Recovering legal costs under CPR (Campbell v Campbell). Note: this judgment was unsuccessfully appealed but the appeal did not consider the two-thirds point.

The rationale for the

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