29 May 2025

Paralegal, Monique Jewett looks at What is Fair? Understanding Reasonable and Proportionate Disbursement Costs.

What Are Disbursements?
Disbursements are expenses incurred during the course of legal proceedings that are payable to third parties. Common examples include fees for medical reports, pagination, court fees, and interpreter services. This article focuses on interpreter fees, particularly in the context of determining what constitutes a “reasonable” disbursement.

Why Do Legal Costs Matter?
The general rule concerning the recovery of legal costs is set out in Part 44 of the Civil Procedure Rules (CPR). Costs must be both reasonable and proportionate to the matters in issue. A recent case Santiago v. Motors Insurance Bureau [2025] provides helpful guidance on what constitutes a recoverable and reasonable interpreter fee within the fixed-cost regime.

In Santiago, the Claimant required an interpreter for trial. The Court of Appeal confirmed that interpreter fees are recoverable as disbursements under the fixed-costs regime and remitted the matter to the County Court to determine reasonableness.

The Claimant submitted a fee for the interpreter’s services of £924.00 and the agency’s fees for obtaining the interpreter. The Defendant objected to this as the interpreter’s fee itself was £300.00 per hour (exclusive of VAT). The agency in question was associated with the Claimant’s law firm, which also raised objections from the defendant. However, the Court found no issue with the agency’s affiliation, noting that overheads and profit would be factored into the cost regardless of whether the interpreter was hired through an affiliated or independent agency.

Importantly, the Court held that it was not necessary to itemise or “strip down” the agency fee, as long as the total charge was within a reasonable market rate. In this instance, although the quoted fee was at the higher end of the market range, it was not considered excessive. Nevertheless, the judge adjusted the recoverable figure to £794.40, based on the mean of comparable quotations, taking into account the modest value of the claim (£20,000).

Key Takeaways

• When incurring disbursements, it is crucial to ensure that costs are both reasonable and proportionate to the value and complexity of the case.
• A breakdown of fees may not be required if the total cost reflects the market rate.
• The relationship between the instructing firm and the service provider does not automatically render a fee unreasonable.
• Even in a fixed-cost regime, disbursements may be challenged and adjusted by the Court based on proportionality.
• Parties should be prepared to justify the reasonableness of disbursements with evidence of market rates or quotations.

Ultimately, while the losing party is typically expected to pay the successful party’s costs, the Court retains discretion to depart from this rule. It is therefore essential for firms to maintain detailed and justifiable records of all time and expenses incurred to support cost recovery.