7: Case management powers and costs

Question 1

What can happen if parties fail to comply with Rules, Practice Directions, and Orders?

Answer 1

They can be sanctioned and penalized through costs orders made against them.

Question 2

What are directions in the context of case management?

Answer 2

They are instructions from the court on the timing and steps to be taken by the parties.

Question 3

What is the overriding objective in the context of case management?

Answer 3

To manage cases justly and at proportionate cost.

Question 4

Which part of the CPR deals specifically with the court’s case management powers?

Answer 4

Part 3 of the CPR.

Question 5

What are the supplementary Practice Directions associated with Part 3?

Answer 5

Six Practice Directions labelled A—E.

Question 6

Who are the key judicial figures in case management?

Answer 6

District Judges, Masters, and Circuit Judges.

Question 7

What is the purpose of the allocation stage in case management?

Answer 7

To decide whether a case should be dealt with on the small claims track, fast track, or multi-track.

Question 8

How does dealing with matters without parties attending court help?

Answer 8

It can expedite the process and reduce the costs associated with court appearances.

Question 9

What can a party do if they fail to comply with a case management direction?

Answer 9

They should seek agreement from the other party to vary the timetable or apply to the court for an extension.

Question 10

What if the other party won’t agree to an extension of time?

Answer 10

Apply to the court for an extension or relief from sanctions before the deadline expires.

Question 11

What is an “unless order”?

Answer 11

An order that imposes a sanction unless a party complies with specific conditions set by the court.

Question 12

What are wasted costs orders?

Answer 12

Orders that make legal representatives personally liable for costs due to their improper conduct.

Question 13

What are the implications of a failure to comply with an unless order?

Answer 13

The specified sanction will automatically take effect, which can include striking out a case or defense.

Question 14

What constitutes a “good reason” for non-compliance with case management directons under Denton guidelines?

Answer 14

Reasons such as illness, injury, or late developments in the case.

Question 15

What is summary judgment?

Answer 15

A judgment given when an opponent’s case shows no reasonable prospects of success.

Question 16

Under what circumstances can summary judgment be applied?

Answer 16

When the claimant or defendant has no real prospect of success and there is no compelling reason for a trial.

Question 17

What are the criteria under Part 24 for granting summary judgment?

Answer 17

1. No real prospect of success for the claimant or defendant.
2. No compelling reason for a trial.

Question 18

What are the criteria under Part 3 for striking out a claim or statement of case?

Answer 18

1. No reasonable grounds for bringing or defending the claim.
2. Statement of case is an abuse of the court’s processes
3. Failure to comply with a PD.

Question 19

How does striking out overlap with summary judgment provisions?

Answer 19

Both can involve striking out claims or defences that lack merit, but:
summary: no real prospect of success
striking out: not abiding by the rules

Question 20

Can both a summary judgment and striking out be applied for?

Answer 20

Yes, they can be combined, but you can’t assume a summary judgment means it always includes striking out.

Question 21

What are the sanctions that the court can use?

Answer 21

Striking out
Disallowing evidence
Interest (refuse to allow)
Payment into court (to be held)
Unless order
Financial penalty

Question 22

What is the procedure for applying for summary judgment?

Answer 22

Claimant must wait for acknowledgment of service or defence.
Then file N244 application
Give 14 days notice of hearing to D.

Question 23

What is the standard basis for assessing costs?

Answer 23

Costs that are reasonably incurred and proportionate, with any doubt resolved in favour of the paying party.

Question 24

What is the indemnity basis for assessing costs?

Answer 24

Costs that are not unreasonably incurred or unreasonable in amount, with any doubt resolved in favour of the receiving party.

Question 25

What is qualified one-way costs shifting (QOCS)?

Answer 25

Only in personal injury cases, claimants do not have to pay defendant’s costs if the claim fails, but defendants must pay if the claim succeeds.

Question 26

What is Precedent H?

Answer 26

A form used for filing and exchanging costs budgets in multi-track cases.

Question 27

When is a costs management order typically made?

Answer 27

When costs budgets have been filed and exchanged.

Question 28

When does Precedent H need to be filed?

Answer 28

Under £50K: with DQ
More than £50K: 21 days before CMC

Question 29

What is Precedent R?

Answer 29

After a Precedent H form is filed, all other parties must file an agreed Precedent R Budget Discussion Report no later than 7 days before the first Case Management Conference.

Question 30

What is a CCMC?

Answer 30

Costs and Case Management Conference hearing - deals with costs in the CMC.

Question 31

What is the result of a cost-capping order?

Answer 31

The affected party isn’t limited to what they can spend, just what they can recover from the other party.

Question 32

What criteria must be met for a costs capping order?

Answer 32

1. Interests of justice.
2. Risk of disproportionate costs.
3. Inadequate control by case management or detailed assessment.

Question 33

What is an order for security of costs?

Answer 33

A type of order that requires a party to pay money into a court or to provide a bond/guarantee as security for an opponent’s costs of the proceedings.

Question 34

What are the 6 grounds for applying for security for costs?

Answer 34

1. Claimant resides outside jurisdiction.
2. Claimant company may be unable to pay.
3. Claimant changes address to evade consequences.
4. Incorrect address given.
5. Nominal claimant with inability to pay.
6. They have dealt with their assets to make enforcement difficult (sold/hidden).

Question 35

What is the two-stage test for security for costs?

Answer 35

1. One of the 6 grounds must be satisfied.
2. Court must find it just to order security.

Question 36

What triggers the need for a detailed assessment of costs?

Answer 36

When the costs are not fixed or require a detailed evaluation beyond summary assessment.

Question 37

When should the court make a summary assessment of costs?

Answer 37

At the conclusion of a fast track trial and any other hearing that hasn’t lasted for more than a day.

Question 38

When should each party file a statement of costs?

Answer 38

24 hours before the hearing.

Question 39

How long until costs are payable after trial?

Answer 39

Within 14 days of the trial.

Question 40

What is the name of the statement of costs form?

Answer 40

N260

Question 41

What is Precedent S?

Answer 41

The electronic bill of costs for multi-track claims.

Question 42

What are the two ways that a detailed assessment of costs can take place?

Answer 42

1. If under £75K, provisional assessment on paper.
2. If over, at a detailed assessment hearing.

Question 43

How soon should a detailed assessment procedure commence after judgment?

Answer 43

Within 3 months.

Question 44

What is the process for detailed assessment?

Answer 44

1. Bill of costs and notice of commencement (N252) served by receiving party.
2. Points of dispute served within 21 days.
3. Depending on disputes, apply for costs certificate, reply and negotiation or detailed assessment hearing.

Question 45

What happens if there are no disputes raised for the bill of costs?

Answer 45

The receiving party applies for a default costs certificate for payment, including fixed costs and court fee.

Question 46

What happens if there are only some disputes raised for the bill of costs?

Answer 46

For disputed costs, negotiate and apply for detailed assessment at court (N258). Then, apply for interim costs certificate for costs that aren’t in dispute.

Question 47

What happens if there are disputes raised for the bill of costs?

Answer 47

First try to negotiate and if no agreement, apply for detailed assessment at court (N258) within the next 3 month period (after the first 3 month period to commence).

Question 48

What happens if the paying party fails to serve points of dispute on time?

Answer 48

The receiving party can apply for a default costs certificate for the full amount of the bill.

Question 49

If the costs are less than £75,000, what is the process after the receiving party has applied for a detailed assessment hearing?

Answer 49

1. Court makes a provisional assessment of costs within 6 weeks.
2. Bill of costs arrives and parties can request a hearing within 21 days.
3. If not hearing, costs assessment is binding.
4. If there is a hearing, follow £75,000 or more process.

Question 50

If the costs are more than £75,000, what is the process after the receiving party has applied for a detailed assessment hearing?

Answer 50

1. Court fixes hearing with 14 days notice
2. Hearing
3. Receiving party files completed bill 14 days after hearing.
4. Court issues final costs certificate.