Costs Management Flashcards
How do the courts attempt to control and manage costs?
The parties provide budgets in a prescribed form of their own future costs, with those budgets being update from time to time, and submitted for agreement to the other parties. Where there is no agreement, this will go to the court for approval
What is the purpose of costs management?
The court should manage both the steps to be taken and the costs to be incurred by the parties to any proceedings, so as to further the overriding objective
Which claims normally require costs management?
Small claims and fast track cases usually proceed to trial without interim hearings, therefore multi-track cases are really the only ones where costs management are considered
Do litigants-in-person have to prepare budgets?
No, but he must be provided with a copy of the budget of any other party. Litigants in person do not have to file a budget discussions report either
When is the date for filing the costs budget set out?
This is set out when the court sends notice of proposed allocation. For claims of less than £50,000 this will be when the directions questionnaire is filled out. For other claims, this will be 21 days prior to the first case management conference.
What should a budget contain?
A budget will contain a detailed breakdown of the costs and disbursements already incurred , and an estimate of the future costs, and the assumptions on which those are based for the case managements, disclosure, evidence, pre-trial review, trial preparation and trial stages, along with any ADR or settlement discussions.
What does every budget need to include at the end?
A statement of truth
What is completed after costs budgets have been filed and served?
A budget discussion report needs to be completed setting out those figures agreed for each phase, figures which are not agreed for each phase and a brief summary of grounds for dispute.
When should a budget discussion report be filed by?
No later than seven days before the first case management conference?
What happens if a party’s budget changes?
Once a costs budget is approved by the court, it is difficult to persuade the court that inadequacies or mistakes should be rectified/reversed. Instead, a party must revise its budget if there are significant developments in the litigation
What is the starting point for the process of revising budget changes?
The last approved or agreed budget
