Disputes - Directions (Case Management) (9) Flashcards
What are case management directions?
Directions are orders of the court governing the steps that parties must take leading up to trial, often referred to as ‘case management’. These will differ by track.
What case management directions are given for small claims?
No directions issued (litigants follow the CPR).
What case management directions are given for fast track?
Directions are usually standard (can be found online).
What case management directions are given for multi track?
Directions are often bespoke, determined at a ‘Case Management Conference’.
What is the cost management process on the multi track?
Parties in the multi track are required to engage in costs management, to ensure complex cases comply with the overriding objective (claims exceeding £10,000,000 are generally exempt). This involves:
(1) Preliminary Budget: Parties provide details of their incurred costs and estimated future costs.
(2) Budget Discussion Report: Parties itemise agreed and disputed figures.
(3) Official Budget: Court approves or revises an official budget.
(4) Costs Management Order: Court generally orders that the official budget must be adhered to
What is the preliminary budget?
Preliminary Budget: Parties provide preliminary costs on Precedent H. This is a: a) detailed breakdown of costs incurred so far; and b) an estimate of future costs (with reasons). It includes a statement of truth signed by a senior legal representative.
(1) Filing: Must be filed at court by the correct date.
- Claim Less Than £50,000: Filed alongside Directions Questionnaire.
- Claim of £50,000 or More: Filed no later than 21 days before the first Case Management Conference.
(2) Non-Completion: Failure to file a budget on time means the party is treated as having filed a budget in respect of court fees alone. Future costs are irrecoverable - successful claims may become fruitless (Mitchell v News Group).
What is the budget discussion report?
Budget Discussion Report: Parties then itemise the costs they dispute and the costs agreed upon on Precedent R.
(1) Filing: Must be filed at court no later than 7 days before the first CMC.
(2) Effect: This outlines costs for the court to determine.
What is the official budget?
Official Budget: Court will approve incurred and agreed future costs, and determine disputed future costs, in the form of an Official Budget. Litigation is typically front-loaded for this reason - it is simpler to incur costs early than agree on future costs.
(1) Costs Hearing: Courts will typically review disputed future costs at a costs hearing (generally as part of the first Case Management Conference). Disputed incurred costs are determined at the end of trial (see costs).
(2) Amendments: The budget can be altered by agreement, or by court order if a significant and unforeseen development arises. This is done on a Budget Variation Summary Sheet on Precedent H.
(3) Relief: Relief may be granted against a party who has spent disproportionately prior to this stage.
What is a cost management order?
Costs Management Order: Courts will typically make a ‘costs management order’, tying parties to the Official Budget.
(1) Effect: When assessing costs on the standard basis at the end of trial, the court will not depart from the last approved budget unless there is good reason to do so. As such, parties must rigidly adhere to the approved budget.
(2) Effect of No Order: If no order is made, the court has more flexibility when awarding costs, and will generally award costs that do not exceed the last approved official budget by more than 20%.
>Parties must provide a ‘Statement of Reasons’ if costs do exceed 20%. Court has discretion to award or not.
What is a case management conference?
Multi track claims typically include case management conferences to discuss and revise directions throughout the case.
(1) First CMC: The first CMC is listed on allocation. It is usually sufficient to order directions and resolve issues.
(2) Subsequent: Subsequent CMCs may be listed to review progress.
(3) Pre-Trial Review: A final CMC may be listed close to trial to resolve last minute issues (Pre-Trial Reviews).
What procedure is followed in the case management conference?
Procedure: Case management conferences proceed as such:
(1) Attendance: A member and a legal representative of both parties must attend. They must have knowledge and authority to deal with any potential matters.
>Lack of knowledge or authority may lead to adjournment, with the guilty party ordered to pay wasted costs.
(2) Review: Court reviews steps up to conference, and determines whether directions have been complied with.
(3) Directions: Courts may issue further directions compliant with the overriding objective (these should take account of any financial imbalance between parties).
(4) Costs: Costs of the conference will be determined there and then (typically ‘costs in case’).
What directions can be given on the multi-track?
Directions: Directions will be ordered by the court or agreed by the parties. If agreed on the multi track, they will still require permission.
(1) Standard Directions: A set of standard directions and time limits ordered for fast track and simple multi track claims.
(2) Model Directions: Courts may elect from a menu of ‘Model Directions’ in respect of complex multi track claims. Compliance and time limits are more flexible.
Alteration: Parties may alter these directions without approval, unless attempting to alter the dates of CMCs, Pre-Trial Checklist Filing, or the Trial (which require permission).
Transparency: Parties are required to inform the court immediately if a claim is settled, and file a draft order to this effect.
What provisions will the court make for vulnerable parties?
Vulnerable Parties: Courts will provide greater provisions in respect of vulnerable parties and witnesses. Vulnerabilities should be identified as early as possible in order to make appropriate directions.
(1) Vulnerability: Vulnerabilities are circumstances adversely affecting a person’s ability to participate in proceedings or give evidence. They can be personal, situational, permanent and temporary.
(2) Directions: Courts may alter directions pursuant to a vulnerability, and order ‘special measures’ to accommodate the affected party, such as blocking screens, video links etc.
What are the consequences of non-compliance with court sanctions?
Non-Compliance: Failure to comply with court directions can result in a number of possible sanctions.
(1) Late Compliance: Courts are more lenient with late compliance. Opponents can apply to request the court to order compliance or sanction the late party, if they have no good reason for delay.
(2) Postponing Trial: Courts are very strict if failure to comply jeopardises the date of trial, which is regarded as ‘sacrosanct’.
What sanctions can be ordered for non-compliance with court sanctions?
Sanctions: Courts have a wide range of sanctions in respect of non-compliance.
(1) Strike Out: Court can strike out the party’s statement of case, effectively ending their claim or defence (CPR 3.4).
Grounds: Requires that the statement: a) discloses no reasonable factual or legal basis; or b) comprises an abuse of process; or c) the party otherwise failed to comply with a rule, practice direction or court order.
(2) Indemnity Costs: Court may require party to pay opponent’s costs on the indemnity basis (even if successful).
(3) Interest Order: Court may increase interest payable, or decrease interest received, on costs.
(4) Unless Order: Court may strike out case ‘unless’ party complies with direction in given time frame.
Judgment: Strike out means opponent is entitled to default judgment with interest and costs. They must still apply for the default judgment.
