Costs Capping

Question 1

1. CPR 3.19 –

Answer 1

1. CPR 3.19 – Is an order limiting the amount of future costs, including disbursements, which a party may recover pursuant to an order to costs subsequently made or work done after date of the costs capping order. It can cover the whole litigation of any issue which is ordered to be tried separately.

Question 2

2. CPR 3.19(5) - When making a costs capping order, the Court will consider the test

Answer 2

2. CPR 3.19(5) - When making a costs capping order, the Court will consider the test
   (a) Is it in the interest of justice
   (b) There is a substantial risk that without a costs order, will be disproportionately incurred costs
   (c) Can the risk in (b) be controlled by (i) case management orders and (ii)detailed assessment of costs.

Question 3

4. CPR 3.19(7) –

Answer 3

4. CPR 3.19(7) – The party can apply to vary the costs order. The court will not vary the order unless
   (a) There has been a material and substantial change of circumstances
   (b) Other compelling reason

Question 4

3. CPR 3.19 (6) when considering whether to exercise direction, the court will consider all the circumstances of the case including –

Answer 4

3. CPR 3.19 (6) when considering whether to exercise direction, the court will consider all the circumstances of the case including –
   (a) – Are either of the parties financially imbalanced
   (b) – Will the costs cap be proportionate to overall costs
   (c) – The stage of proceedings
   (d) the costs already incurred and future costs

Question 5

5. PGI Group v Margaret Thomas (2023) –

Answer 5

5. PGI Group v Margaret Thomas (2023) – CCO was refused – “costs management has done for costs capping what video did for the radio star” – There has been no other costs capping order for a decade other than judicial reviews

Question 6

Note: Arbitration and GLO’s mention Costs Capping. GLO says might think budgeting means CCO not necessary, but can actually be “line in the sand” over which cannot go over

Answer 6

Note: Arbitration and GLO’s mention Costs Capping. GLO says might think budgeting means CCO not necessary, but can actually be “line in the sand” over which cannot go over

Question 7

CPR 3.20 - APP

Answer 7

3.20

(1) An application for a costs capping order must be made on notice in accordance with Part 23.

(2) The application notice must – (a) set out –

(i) whether for whole litigation or particular issue

(ii) why a costs capping order should be made; and

(b) be accompanied by a budget setting out incurred and future

(3) The court may give directions for the determination of the application and such directions may –

(a) direct any party to the proceedings –

(i) to file a schedule of costs in the form set out in paragraph 3 of Practice Direction 3E – Costs capping;

(ii) to file written submissions on all or any part of the issues arising;

(b) fix the date and time estimate of the hearing of the application;

(c) indicate whether the judge hearing the application will sit with an assessor at the hearing of the application; and

(d) include any further directions as the court sees fit.

Question 8

CPR 3.21

Answer 8

3.21 An application to vary a costs capping order must be made by application notice pursuant to Part 23.