Understanding the Differences Between Bills of Costs and Costs Outlines in Litigation

Hi Everyone, it's Kristy from Cleary Legal.

I wanted to chat about costs today.

When you are involved in litigation, managing costs effectively can make a significant difference to your case and your budget. Two key documents often come up in this process: the Bill of Costs and the Cost Outline. While they might seem similar (and many people MAY use them interchangeably....), they serve different purposes and are used at different stages of litigation.

By the way, all Bills of Costs and Costs Outlines discuss legal fees - the bigger questions are how you present the amounts and how you must, or are allowed to, calculate them.

What Is a Cost Outline?

A Cost Outline is a document prepared during ongoing litigation. It provides an interim summary of the legal costs incurred up to a certain point. This document is not final but gives the court and the opposing party an idea of the fees, disbursements, and time spent so far.

When Do You Use a Cost Outline?

• During the course of litigation, especially in complex or lengthy cases.

• When the court requests an update on costs during the case (not end of the case).

• To support applications for interim costs.

• As litigation strategy.

  
  

Because the litigation is ongoing, the Cost Outline is not a final accounting. It may be adjusted as the case progresses.

What Is a Bill of Costs?

A Bill of Costs is a detailed and final statement of all legal costs incurred once the litigation has concluded or a particular matter is finally disposed of. It is a comprehensive accounting that supports a claim for costs recovery from the other party.

When Do You Use a Bill of Costs?

• At the end of a case or after a final judgment.

• When seeking to recover costs awarded by the court.

• To provide a full and detailed record of all fees and disbursements related to the litigation.

• As litigation strategy.

  
  

The Bill of Costs is often scrutinized closely because the idea is that you will receive an ultimate costs award from the opposing side as a part of final judgement.

Understanding these differences helps you prepare the right document at the right time, avoiding delays and disputes.

Practical Tips for Managing Costs Documents

• Keep detailed records from the start. Track all time spent and expenses as the case progresses. This makes preparing both Cost Outlines and Bills of Costs easier. Keep the receipts for both scenarios, you never know when evidence will be required (and yes, sometimes disbursement evidence is NOT required).

• Use clear descriptions. Whether summarizing or itemizing, clear explanations of work done help avoid confusion and challenges.

• Review court rules. Make sure you are calculating what you are allowed to, and how.

• Seek expert help. Preparing these documents can be time-consuming and complex. Getting assistance (me) can save you time and reduce errors.

• Communicate with your client. Keep them informed about costs and the purpose of these documents to manage expectations.

  
  

How I Can Help You Save Time and Money

Throughout my career, I have worked with many different styles of Bills of Costs and Cost Outlines (because each lawyer has their own style, and each Bill of Costs and Cost Outline will look just a bit different). This support lets you focus on the substantive parts of your case while ensuring your costs are properly documented and recoverable. Contact me at kristy@clearlylegal.ca and we'll chat.