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11. This Part specifies the procedure for determining the amount payable in respect of a person’s reasonable legal expenses in civil recovery proceedings, where the court has made a recovery order which provides for the payment of those expenses.
12.—(1) This regulation applies where a person seeks the Director’s agreement to the payment of a sum in respect of his legal expenses pursuant to section 266(8B)(a) of the 2002 Act or article 177(11)(a) of the Order in Council.
(2) In determining the amount which may be paid in respect of legal expenses with his agreement, the Director must have regard to the provisions of Part 5 which would apply on the assessment of those expenses by the court.
(3) Where the Director agrees to the payment of the sum which a person seeks in respect of his legal expenses—
(a)he shall give that person and the trustee for civil recovery notice of the agreed sum; and
(b)the sum payable in respect of those expenses shall be the agreed sum.
13.—(1) Unless the Director agrees to the payment of the sum which a person seeks in respect of his legal expenses pursuant to provision made in a recovery order, that person must commence proceedings for the assessment of those expenses in accordance with paragraph (2).
(2) Where paragraph (1) requires a person to commence proceedings for the assessment of his legal expenses—
(a)in relation to civil recovery proceedings in England and Wales, he must commence proceedings for the detailed assessment of those expenses in accordance with CPR Part 47, subject to the modifications that—
(i)rule 47.7 shall have effect as if it provided that he must commence those proceedings not later than 2 months after the date of the recovery order; and
(ii)rule 47.14(2) shall have effect as if it provided that he must file a request for a detailed assessment hearing not later than 2 months after the expiry of the period for commencing the detailed assessment proceedings;
(b)in relation to civil recovery proceedings in Northern Ireland, he must begin proceedings for the taxation of those expenses in accordance with RSC (NI) Order 62, subject to the modification that rule 29(1) shall have effect as if it provided that he must begin those proceedings not later than 4 months after the date of the recovery order.
(3) The court will assess the person’s legal expenses in accordance with the provisions of Part 5 and the relevant rules of court, and the sum payable in respect of those expenses shall be the assessed amount.
14.—(1) Where the sum payable in respect of a person’s legal expenses—
(a)exceeds the total amount which has been released in respect of those expenses in accordance with Part 3, the trustee for civil recovery must pay the balance out of the sums referred to in section 280(1) of the 2002 Act or article 191(1) of the Order in Council;
(b)is less than the total amount which has been released in respect of those expenses in accordance with Part 3, the person to whose expenses the sum relates must repay the balance to the trustee.
(2) The trustee for civil recovery may only make a payment in respect of a person’s legal expenses to—
(a)the solicitor who is instructed to act for that person; or
(b)where appropriate, the solicitor who was so instructed when the legal expenses to which the sum relates were incurred.
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