Damages have settled. The defendant has agreed to pay the claimant’s reasonable costs, to be assessed if not agreed. The bill has been prepared. The paying party has either made a poor offer, served aggressive Points of Dispute, delayed for weeks, or refused to engage properly.
The client wants the file closed. The solicitor wants costs paid. The paying party is going nowhere. This is where claimant firms often ask: should we issue Part 8 costs-only proceedings under CPR 46.14?
The answer depends on the procedural position, the settlement wording and whether costs liability is agreed in writing. CPR 46.14 can be a powerful route, but it should not be used casually. It is not a generic pressure tactic. It applies in a specific situation and the paperwork needs to be right.
What Are CPR 46.14 Costs-Only Proceedings?
Costs-only proceedings are used where the substantive dispute has settled before proceedings were issued, but the parties have not agreed the amount of costs. The usual situation is:
- no claim has been issued;
- the substantive dispute has settled;
- the parties have agreed who will pay costs;
- that agreement is in writing;
- the amount of costs has not been agreed;
- the receiving party needs a court order for costs to be assessed or determined.
Proceedings are usually commenced under Part 8. In practical terms, the Part 8 claim is not about reopening damages. It is about getting the costs position formally before the court so the amount can be assessed if not agreed.
When Does CPR 46.14 Apply?
CPR 46.14 should be considered where:
- the claim settled pre-issue;
- all substantive issues are resolved;
- the parties agreed which party will pay costs;
- the agreement is recorded in writing;
- the amount of costs is disputed;
- no proceedings have already been started.
Common examples include:
- Housing Disrepair claims settled pre-issue;
- MoD NIHL claims settled after Matrix negotiation;
- NIHL claims settled before issue;
- personal injury claims settled pre-issue;
- professional negligence or other civil claims settled before proceedings;
- any matter where liability for costs is agreed but the amount is not.
The key is written agreement. If costs liability is not agreed in writing, CPR 46.14 may not be the correct route.
When CPR 46.14 Is Not the Right Route
Claimant firms should be careful. CPR 46.14 may not be suitable where:
- proceedings have already been issued;
- there is already a costs order in issued proceedings;
- the settlement does not confirm who pays costs;
- the settlement was global inclusive;
- costs were already compromised;
- the dispute is really about breach of settlement terms;
- there is a substantial dispute about whether costs are payable at all;
- the paying party’s liability for costs is not agreed in writing;
- the issue belongs in existing proceedings.
If proceedings have already been started, the correct route is usually within those proceedings, not a new costs-only Part 8 claim. If the settlement was global inclusive, there may be no separate costs claim left to pursue. If the wording is unclear, the settlement correspondence needs to be reviewed carefully before issuing — see breach of settlement in housing disrepair claims.
Why Settlement Wording Matters
The costs wording is the foundation of any CPR 46.14 application. Good wording usually says something along the lines of:
- the defendant will pay the claimant’s reasonable costs;
- costs are to be assessed if not agreed;
- costs are payable on the standard basis;
- the agreement is damages-only and not global inclusive.
The exact wording matters. Weak wording can create problems. Risky wording includes:
- “full and final settlement” without clear costs wording;
- “inclusive of costs”;
- “global settlement”;
- silence on costs;
- unclear email exchanges;
- offers that do not specify whether costs are included;
- settlement terms that appear to compromise all claims and costs.
Before issuing Part 8, check the settlement trail from start to finish.
How Long Should You Wait Before Issuing?
There is no single answer. A claimant firm should usually give the paying party a reasonable opportunity to engage. That may include:
- sending the bill;
- serving N252 where appropriate;
- inviting an offer;
- chasing for a response;
- considering any Points of Dispute;
- making a sensible counter-offer;
- warning that costs-only proceedings may follow.
But waiting indefinitely helps nobody. If the paying party is ignoring correspondence, making unrealistic offers, refusing to confirm its position, or delaying without good reason, Part 8 may become commercially appropriate. The question is not only whether the rules allow it. The question is whether issuing is proportionate, necessary and likely to move the matter forward.
Documents Needed Before Issuing Part 8
Before issuing costs-only proceedings, claimant firms should have the file in order. You will usually need:
- the settlement agreement or written confirmation;
- evidence that all substantive issues have settled;
- written confirmation that the paying party will pay costs;
- the bill of costs or electronic bill;
- N252 if served;
- Points of Dispute if received;
- Replies if prepared;
- offer correspondence;
- chasers;
- evidence of delay or refusal to engage;
- disbursement invoices;
- fee earner details;
- a clear chronology;
- any relevant Part 36 correspondence.
The court should be able to understand why a costs order is needed. If the paperwork is messy, the application becomes easier to resist.
N252 and Costs-Only Proceedings
N252 is part of the detailed assessment process. Where costs are payable and not agreed, the receiving party will usually prepare the bill and serve Notice of Commencement. However, where no proceedings have been issued and there is no order for costs, the receiving party may need a CPR 46.14 costs-only order before detailed assessment can properly proceed.
The sequence depends on the file. In some cases, the bill is prepared first so the paying party can engage and settlement can be attempted. In others, the costs-only route is needed because the paying party will not cooperate or because an order is required. The safest approach is to review the settlement wording and procedural position before assuming the correct sequence.
Housing Disrepair Costs-Only Proceedings
Housing Disrepair is one of the main areas where CPR 46.14 becomes relevant. Many HDR claims settle pre-issue. The defendant may agree damages and reasonable costs, but then make a low global costs offer or delay engagement. Common HDR costs-only issues include:
- unclear settlement wording;
- damages agreed but costs not agreed;
- repair terms unresolved;
- landlord delay;
- surveyor fee disputes;
- proportionality arguments;
- Points of Dispute after N252;
- low global offers;
- dispute over whether Part 8 is necessary.
For claimant firms, the key is to preserve the costs position at settlement. If the defendant has agreed costs to be assessed if not agreed, the costs-only route may be available if the amount cannot be resolved. (See housing disrepair costs in 2026.)
MoD NIHL Costs-Only Proceedings
MoD NIHL claims can also create costs-only issues. Damages may settle under or by reference to a Matrix position, but costs may remain disputed. A paying party may argue that the costs should be low because damages were resolved under a matrix. That does not automatically cap costs — as we explain in MoD NIHL costs after Matrix settlement.
Where damages have settled pre-issue and costs liability is agreed in writing, CPR 46.14 may need to be considered if the amount is not agreed. The costs file should be ready to show:
- service evidence work;
- medical and audiology evidence;
- Matrix advice;
- offer history;
- settlement wording;
- costs entitlement;
- disbursements;
- proportionality.
Should You Threaten Part 8 Before Issuing?
Usually, yes. A clear warning can help resolve the dispute without issuing. A good chaser should be firm but not aggressive. It should say:
- costs liability is agreed;
- the amount remains unresolved;
- the receiving party has attempted to resolve matters;
- the paying party’s offer is unrealistic or no response has been received;
- unless a substantive response is received by a set date, costs-only proceedings may be issued.
This gives the paying party a final opportunity to engage. It also helps build a paper trail if issuing becomes necessary.
How to Decide Whether Issuing Is Commercial
Before issuing, consider:
- the bill value;
- the offer received;
- the gap between the parties;
- disbursements;
- VAT;
- proportionality;
- Part 36 risk;
- assessment costs;
- court fee;
- delay;
- client cashflow;
- strength of the bill;
- quality of time entries;
- whether the settlement wording is clear.
Part 8 should be used to unlock a stalled costs dispute, not to over-litigate a small difference. In some files, a commercial settlement is better. In others, issuing is necessary because the paying party is relying on delay.
Common Mistakes With CPR 46.14
1. Issuing without clear written costs agreement
This is the biggest risk. CPR 46.14 needs written agreement on costs liability.
2. Issuing when proceedings already exist
If proceedings were already issued, the costs issue will usually belong in those proceedings.
3. Ignoring global settlement wording
If costs were compromised globally, there may be no separate costs claim.
4. Treating Part 8 as a threat only
Part 8 is a formal procedure. The file should be ready before it is threatened or issued.
5. Not preparing the bill properly first
A weak bill weakens the application and the negotiation.
6. Failing to evidence delay
If delay is part of the reason for issuing, keep the correspondence trail.
7. Not considering proportionality
Even if CPR 46.14 applies, the court will still consider reasonableness and proportionality when costs are assessed.
What Happens After a Costs-Only Order?
If the court makes an order for costs to be assessed if not agreed, the matter usually moves into the detailed assessment process. That may involve:
- serving or relying on the bill;
- Notice of Commencement;
- Points of Dispute;
- Replies;
- negotiation;
- provisional assessment or detailed assessment hearing;
- settlement before assessment.
The order does not mean the bill is automatically paid in full. It creates the route for assessment. That is why the bill still needs to be strong.
How DMD Costs Can Help
DMD Costs helps claimant solicitor firms with costs-only issues after settlement. We can assist with:
- reviewing settlement wording;
- checking whether CPR 46.14 may apply;
- preparing the bill;
- preparing Precedent S where required;
- reviewing low offers;
- preparing Replies to Points of Dispute;
- advising on whether Part 8 is commercially sensible;
- preparing the costs chronology;
- supporting the file through negotiation;
- progressing the matter towards settlement or assessment.
We focus on the costs strategy, not just the bill. If the defendant has agreed to pay costs but will not make a sensible offer, send us the file. We will review whether the matter is ready for the next step.