Costs management regimes Flashcards
When does the costs management regime apply?
By default it applies to all cases except:
* SMT or FT claims
* Claims commenced on or after 22 April 2014 where value of claim >£10 million
* Claims commenced after 6 April 2016 by or on behalf of a child
* Claims subject of fixed costs or scale costs
* if CMR is disapplied
SMT refers to Summary Trial claims, and FT refers to Fast Track claims. These exceptions are important for understanding when costs budgets are required.
What is the filing deadline for budgets?
21 days before first Case Management Conference (CMC), unless value is <£50,000 – in which case with the parties’ DQs
DQs refers to Directions Questionnaires.
What is the budget?
An estimate of the reasonable and proportionate costs which a party intends to incur
Budgets relate to potential recoveries rather than actual solicitor’s costs.
What document is used to file the costs budget?
Precedent H
What must be included in the costs budget?
Any assumptions on which the budget is based and any possible discrepancies
Any incurred costs should be included but not altered.
What is the purpose of Budget Discussion Reports?
To indicate figures that are agreed and not agreed for each phase of litigation and provide a brief summary of grounds of dispute
What form is used for the Budget Discussion Report?
Precedent R.
When does the Costs Management Conference generally take place?
At the first Case Management Conference
What are the two main consequences of the Costs Management Conference?
Case management decisions and costs management orders
Costs management orders need to determine if costs are reasonable and proportionate.
What is the significance of the costs budget when assessing costs on the standard basis?
Courts will have to look at the last approved or agreed costs budget and not depart from it unless there is good reason to do so
Can a party recover a greater sum from the opponent than it has incurred?
Never - even if the budget allows for this
What is the position regarding costs if there has been no costs management order?
The position is less strict.
Only if there is a difference of 20% or more between the costs claimed on a detailed assessment and the costs in the budget for that party, the receiving party must provide a statement of the reasons for the difference with the bill of costs
This applies when comparing costs claimed by a receiving party on detailed assessment and those shown in a filed budget.
What should be submitted to other parties and court when revising costs budgets?
An amended budget via Precedent T
This accounts for significant developments in litigation NOT correcting mistakes in the original costs budget
What happens if a party fails to file a budget?
Automatically treated as having filed a costs budget comprising only the applicable court fees unless the court otherwise orders
This serves as the starting point for future assessment proceedings.
