Cost management

Question 1

Where can you find guidance for litigation being conducted ‘at proportionate cost’?

Answer 1

CPR 44.3(5)

Question 2

What are the factors in considering that the costs incurred are proportionate?

Answer 2

CPR 44.3(5)
If they bear a reasonable relationship to:

• the sums in issue in proceedings;
• the value of any non-monetary relief in issue in proceedings
• the complexity of the litigation
• any additional work generated by the conduct of the paying party; and
• any wider factors in the proceedings, such as reputation or public importance.

Question 3

Which CPR rule provides for the costs capping order and what are the conditions?

Answer 3

CPR 3.19(5)

• it is in the interest of justice
• there is a substantial risk that costs will be disproportionately incurred; and
• the risk cannot be contained by case management directions or orders and detailed assessment of costs

Question 4

What does 3E PD 7.6 tell you about costs?

Answer 4

‘significant developments’

Parties should ensure that costs budgets are based on realistic estimates and assumptions, and must keep costs under review throughout the course of the litigation.

If it becomes apparent that the budget costs have been or will be exceeded, an application should be made as soon as possible.

Question 5

What happens if you failed to notice the court of any significant developments that affects the costs budget?

Answer 5

If the claimant wins having not amended its costs budget, (as requested by 3E PD 7.6), there is a real risk that it will not be able to recover the extra money incurred.

Question 6

What’s the starting point for determining the amount of costs on the standard basis?
CPR 44.3(1)(a)

Answer 6

The last approved costs budget.

Question 7

When should you file and exchange budgets and budget discussion report, and what is the CPR reference?

Answer 7

CPR 3.13

no later than 21 days before the first case management conference.