This practice note looks at how assessments of costs in litigation (both summary and detailed) work when there is a conditional fee agreement (CFA) with a success fee or legal expenses insurance that was entered into before 1 April 2013, or before or after that date in the "excepted cases". The excepted cases are insolvency-related proceedings (where the CFA was entered into before 6 April 2016), publication and privacy proceedings (where the CFA was entered into before 6 April 2019), and mesothelioma claims.

The note considers the limits on recovery in these circumstances, the factors which the court will take into account when assessing costs, and the possibility of applying for a costs capping order. It does not cover the situation where disputes are settled without litigation or without costs being assessed. In those situations, the parties are free to agree the amounts of costs to be paid.

(Note that: On 1 April 2013, the majority of the Jackson/civil litigation reforms came into force. As a result of these changes, where a CFA is entered into on or after 1 April 2013, any success fee under that CFA will no longer be recoverable from the other side, save in the excepted cases. This has a significant impact on costs assessments in those cases (see Practice note, Conditional fee agreements entered into from 1 April 2013: costs assessments).)