Costs Update – Changes to Costs Management Provisions (April 2016)

The key amendments are:

  • The claims made on behalf of a child are excluded from the Costs Management regime – CPR 3.12 (1) (c)
  • In cases where a Claimant has limited/severely impaired life expectation the Costs Management regime will ordinarily be dis-applied – Practice Direction  3E, para 2 (b)
  • For lower value claims – where the stated value of the claim is less than £50,000 – the budget must be filed with the Directions Questionnaire – CPR 3.13 (1) (a)
  • For lower value claims – valued at less than £50,000 – or where a party’s budgeted costs do not exceed £25,000 the parties must only use the first page of Precedent H – Practice Direction 3E, para 6 (c)
  • for other claims the budget must be filed 21 days before the case management conference – CPR 3.13 (1) (b)
  • Agreed Budget Discussion reports must be filed seven days before the first hearing-  CPR 3.13 (2).  Budget discussion reports must set out the figures agreed between the parties for each phase, the figures that are not agreed for each phase, and a brief summary of the grounds of dispute.  There is a new model document for this – Precedent R Budget Discussion Report
  • The Guidance Note on Precedent H has been updated.  Confirmation is given that Contingent Costs sections should be used only for costs which are more likely than not to be incurred.  Confirmation is given that there is no need to repeat the assumptions that are already reflected in the Guidance Notes – only assumptions that significantly impact on the likely level of costs (such as the duration of the proceedings, the number of experts and witnesses, the number of interlocutory applications envisaged) need to be mentioned.  The cost of preparing the budget should not be claimed under any budget phase – the allowance will be inserted once the final budget figure has been approved (the model Precedent H has been updated to allow for this).
  • The parties must follow the Precedent H Guidance Note in all respects – Practice Direction 3E, para 6 (b)
  • The changes to PD 3 apply to proceedings commenced on or after 6 April 2016

Please do get in touch should you wish to discuss any of the changes in more detail If should you wish to receive copies of the refreshed Precedent H or the new Precedent R.

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Michael Heslin

Director (London and Norwich)

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