Costs Management in More Detail Flashcards
What does the cost management regime not apply to?
1) Small claims, fast track, intermediate
2) Claims where amount stated / valued is £10 million or more
3) Claims under person under 18
4) Claims that are subject of fixed costs or scale costs
What is an overview of the steps of the costs management regime?
1) Budgets
2) Budget discussion reports
3) Cost/ Case Management Conference
4) Directions Order OR Costs Management Order
What happens at budgets stage?
Parties prepare budgets, estimates of future costs. Filed and exchanged 21 days before first CMC.
What happens at budget discussion report stage?
Parties discuss and report on the extent of agreed budgets. Filed and exchanged 7 days before CMC.
What happens at Cost / Case Management Conference
The Court will consider budgets and the budget discussion reports.
What happens after discussion of budget reports at CMC?
Court will make directions / order on what should be considered reasonable and proportionate costs in any later assessment proceeding.
When do you file and exchange costs budgets?
1) If less than £50,000 – with directions questionnaire.
2) If more – 21 days before first CMC.
What is a budget?
Estimate of reasonable and proportionate costs which a party intends to incur in proceedings.
What is the relevance of budget in terms of recovery?
It relates to what a party might hope to recover from the other side.
Can a solicitor charge more than what is on the budget?
Yes, they can charge more obviously.
In which form are costs budgets prepared?
Prescribed form Precedent H.
What must the parties indicate at the budget discussion report?
1) Figures agreed and not agreed
2) A brief summary of grounds of dispute
What will the court consider in the first case management direction after budget discussion?
The available costs budgets and costs involved in each procedural step.
What does the court check when looking over budgets?
If they are reasonable and proportionate.
What does a Costs Management Order do?
1) On agreed points: Court records them (but can’t change)
2) If disagreed points: Court reviews and approves revised budget.
What does a Costs Management Order mean for future costs?
Costs will be assessed based on the approved budget.
Can a party claim for more than it has spent if the budget allows more?
No.
Can a court allow extra costs that go further than budget?
Typically, no. unless special good reason.
What is the assessment the Court makes at the conclusion of a case if there was no costs management order?
If difference of 20% or more between costs, receiving party must provide statement of reasons for the difference. Court may reduce recoverable sum.
What happens if there are developments in litigation that warrant a revision to a party’s budget?
An amended budget should be submitted to parties for agreement, and then submitted to court for consideration.
What happens if a party fails to file a budget?
They will be treated as filing a costs budget comprising only of applicable court fees unless court orders otherwise.
