COST AND CASE MANAGEMENT
CONFERENCE
UNIT 6
Read alongside unit 17 and 18
PRACTICE DIRECTION
PD 3D
2.
An order for the provision of costs budgets with a view to a costs
management order being made may be particularly appropriate in the
following cases—
(a) unfair prejudice petitions under section 994 of the Companies Act
2006;
(b)disqualification proceedings pursuant to the Company Directors
Disqualification Act 1986;
(c) applications under the Trusts of Land and Appointment of Trustees
Act 1996;
(d)claims pursuant to the Inheritance (Provision for Family and
Dependants) Act 1975;
(e) any Part 8 or other claims or applications involving a substantial
dispute of fact and/or likely to require oral evidence and/or
extensive disclosure; and
(f) personal injury and clinical negligence cases where the value of the
claim is £10 million or more.
B. Documents to be lodged for costs budgeting purposes
3.
3DPD.2
(a)Save in exceptional circumstances or where the court orders otherwise,
the parties are not expected to lodge any documents other than
,Precedent H and the budget discussion report. Both are annexed, to this
practice direction. If the Excel format precedent on the MOJ website is
used, the calculation on page one will calculate the totals automatically
and the phase totals are linked to this page also.
(b)Precedent T, also annexed to this practice direction, is to be used
in the event of variation of a budget pursuant to rule 3.15A.
C. Budget format
4.
3DPD.3
(a) Unless the court otherwise orders, a budget must be in the form of
Precedent H annexed to this Practice Direction. It must be in
landscape format with an easily legible typeface.
(b)In cases where a party’s total costs (incurred and estimated) do not
exceed £25,000 or the value of the claim as stated on the claim
form is less than £50,000, the parties must only use the first page of
Precedent H.
(The wording for a statement of truth verifying a budget is set out in
Practice Direction 22.)
5.
In deciding the reasonable and proportionate costs of each phase of the
budget the court will have regard to the factors set out at Civil Procedure
Rules 44.3(5) and 44.4(3) including a consideration of where and the
circumstances in which the work was done as opposed to where the case
is heard
6.
The table below identifies where within the budget form the various items
of work, in so far as they are required by the circumstances of your case,
should be included. The time estimated may have to be justified on the
budget hearing along with the grade of fee earner doing the work.
7.
Allowance must be made in each phase for advising the client, taking
instructions and corresponding with the other party/parties and the court
in respect of matters falling within that phase.
8.
The time spent in preparing the budget and associated material must not
be claimed in the draft budget under any phase. The maximum figures
,permitted under rule 3.15(5) should be inserted once the costs budget has
been approved by the court.
9.
The ‘contingent cost’ sections of this form should be used for anticipated
costs which do not fall within the main categories set out in this form.
Examples might be the trial of preliminary issues, applications to amend,
applications for disclosure against third parties or (in libel cases)
applications re meaning. Costs which are disputed (such as the need for a
particular expert) should be set out in the appropriate phase of the budget
and if necessary marked as disputed. Only costs which are more likely
than not to be incurred should be included.
(Variation of an approved or agreed budget is dealt with in rule 3.15A.)
D Assumptions
10.
3DPD.4
(a) The assumptions that are reflected in the table below are not to be
repeated. Include only those assumptions that significantly impact
on the level of costs claimed such as the duration of the
proceedings, the number of experts and witnesses or the number of
interim applications envisaged. Brief details only are required in the
box beneath each phase. Additional documents should only be
prepared in exceptional circumstance and, where they are
disregarded by the court, the cost of preparation may be disallowed.
(b)Written assumptions are not normally required by the Court in cases
where the parties are only required to lodge the first page.
F. Costs management orders
12.
3DPD.7
When reviewing budgeted costs, the court will not undertake a detailed
assessment in advance, but rather will consider whether the budgeted
costs fall within the range of reasonable and proportionate costs.
, PRACTICE DIRECTION
PD 26
Allocation and assignment principles
14.
26PD.14
(1)Rule 26.9 sets out the scope of each track.
(2)Rule 26.12 states the general rule for allocation.
(3)Rule 26.13 sets out the matters relevant to allocation to
a track and, where applicable, assignment to a
complexity band.
(4)Paragraphs (5) to (10) explain the court’s general
approach to some of the matters set out in rule 26.13.
(5)Rule 26.13(2) provides that it is for the court to assess
the financial value of a claim.
(6)Where the court believes that the amount the claimant
is seeking exceeds what they may reasonably be
expected to recover it may make an order under rule
26.7(4) directing the claimant to justify the amount.
(7)In deciding, for the purposes of rule 26.13(2)(a),
whether an amount is in dispute the court will apply the
following general principles—
(a) any amount for which the defendant does not
admit liability is in dispute;
(b)any sum in respect of an item forming part of the
claim for which judgment has been entered (for
example a summary judgment) is not in dispute;
(c) any specific sum claimed as a distinct item and
which the defendant admits they are liable to pay
is not in dispute; and
(d)any sum offered by the defendant which has been
accepted by the claimant in satisfaction of any
item which forms a distinct part of the claim is not
in dispute.
CONFERENCE
UNIT 6
Read alongside unit 17 and 18
PRACTICE DIRECTION
PD 3D
2.
An order for the provision of costs budgets with a view to a costs
management order being made may be particularly appropriate in the
following cases—
(a) unfair prejudice petitions under section 994 of the Companies Act
2006;
(b)disqualification proceedings pursuant to the Company Directors
Disqualification Act 1986;
(c) applications under the Trusts of Land and Appointment of Trustees
Act 1996;
(d)claims pursuant to the Inheritance (Provision for Family and
Dependants) Act 1975;
(e) any Part 8 or other claims or applications involving a substantial
dispute of fact and/or likely to require oral evidence and/or
extensive disclosure; and
(f) personal injury and clinical negligence cases where the value of the
claim is £10 million or more.
B. Documents to be lodged for costs budgeting purposes
3.
3DPD.2
(a)Save in exceptional circumstances or where the court orders otherwise,
the parties are not expected to lodge any documents other than
,Precedent H and the budget discussion report. Both are annexed, to this
practice direction. If the Excel format precedent on the MOJ website is
used, the calculation on page one will calculate the totals automatically
and the phase totals are linked to this page also.
(b)Precedent T, also annexed to this practice direction, is to be used
in the event of variation of a budget pursuant to rule 3.15A.
C. Budget format
4.
3DPD.3
(a) Unless the court otherwise orders, a budget must be in the form of
Precedent H annexed to this Practice Direction. It must be in
landscape format with an easily legible typeface.
(b)In cases where a party’s total costs (incurred and estimated) do not
exceed £25,000 or the value of the claim as stated on the claim
form is less than £50,000, the parties must only use the first page of
Precedent H.
(The wording for a statement of truth verifying a budget is set out in
Practice Direction 22.)
5.
In deciding the reasonable and proportionate costs of each phase of the
budget the court will have regard to the factors set out at Civil Procedure
Rules 44.3(5) and 44.4(3) including a consideration of where and the
circumstances in which the work was done as opposed to where the case
is heard
6.
The table below identifies where within the budget form the various items
of work, in so far as they are required by the circumstances of your case,
should be included. The time estimated may have to be justified on the
budget hearing along with the grade of fee earner doing the work.
7.
Allowance must be made in each phase for advising the client, taking
instructions and corresponding with the other party/parties and the court
in respect of matters falling within that phase.
8.
The time spent in preparing the budget and associated material must not
be claimed in the draft budget under any phase. The maximum figures
,permitted under rule 3.15(5) should be inserted once the costs budget has
been approved by the court.
9.
The ‘contingent cost’ sections of this form should be used for anticipated
costs which do not fall within the main categories set out in this form.
Examples might be the trial of preliminary issues, applications to amend,
applications for disclosure against third parties or (in libel cases)
applications re meaning. Costs which are disputed (such as the need for a
particular expert) should be set out in the appropriate phase of the budget
and if necessary marked as disputed. Only costs which are more likely
than not to be incurred should be included.
(Variation of an approved or agreed budget is dealt with in rule 3.15A.)
D Assumptions
10.
3DPD.4
(a) The assumptions that are reflected in the table below are not to be
repeated. Include only those assumptions that significantly impact
on the level of costs claimed such as the duration of the
proceedings, the number of experts and witnesses or the number of
interim applications envisaged. Brief details only are required in the
box beneath each phase. Additional documents should only be
prepared in exceptional circumstance and, where they are
disregarded by the court, the cost of preparation may be disallowed.
(b)Written assumptions are not normally required by the Court in cases
where the parties are only required to lodge the first page.
F. Costs management orders
12.
3DPD.7
When reviewing budgeted costs, the court will not undertake a detailed
assessment in advance, but rather will consider whether the budgeted
costs fall within the range of reasonable and proportionate costs.
, PRACTICE DIRECTION
PD 26
Allocation and assignment principles
14.
26PD.14
(1)Rule 26.9 sets out the scope of each track.
(2)Rule 26.12 states the general rule for allocation.
(3)Rule 26.13 sets out the matters relevant to allocation to
a track and, where applicable, assignment to a
complexity band.
(4)Paragraphs (5) to (10) explain the court’s general
approach to some of the matters set out in rule 26.13.
(5)Rule 26.13(2) provides that it is for the court to assess
the financial value of a claim.
(6)Where the court believes that the amount the claimant
is seeking exceeds what they may reasonably be
expected to recover it may make an order under rule
26.7(4) directing the claimant to justify the amount.
(7)In deciding, for the purposes of rule 26.13(2)(a),
whether an amount is in dispute the court will apply the
following general principles—
(a) any amount for which the defendant does not
admit liability is in dispute;
(b)any sum in respect of an item forming part of the
claim for which judgment has been entered (for
example a summary judgment) is not in dispute;
(c) any specific sum claimed as a distinct item and
which the defendant admits they are liable to pay
is not in dispute; and
(d)any sum offered by the defendant which has been
accepted by the claimant in satisfaction of any
item which forms a distinct part of the claim is not
in dispute.
