In accordance with CPR 3.13 all parties, except litigants in person, must file and exchange budgets in any Part 7 Multi-Track claim issued after 22 April 2014 unless the value stated on the Claim Form is £10,000,000 or more, the claim is made on behalf of a person under the age of 18, where the proceedings are the subject of fixed costs or scale costs or the Court orders otherwise.
The purpose of costs management is to enable the Court to manage both the steps to be taken in the claim and the costs to be incurred by the parties to further the overriding objective and ensure costs are proportionate.
A Costs Budget must be filed and served with a parties’ Directions Questionnaire where the value of the claim on the Claim Form is less than £50,000, or in any other case not later than 21 days before the first Case Management Conference.
The sanction for failing to file a budget when required to do so is significant. The party will be treated as having filed a budget comprising only the applicable Court fees and therefore will be limited to recovering Court fees only unless the opponent accepts a Part 36 offer after the expiry of the relevant period, or obtains judgment more advantageous than their Part 36 offer where the party in default would be entitled to recover 50% of assessed costs subject to the limitation.
We can help with the preparation of Costs Budgets and other documentation relating to Costs Budgets that might be required by the Court, negotiate Costs Budgets with the opposing party and advise and assist in relation to and at Costs and Case Management Conferences.
It can be extremely beneficial to involve a costs professional at the costs budgeting stage to ensure that adequate provision is made in the Costs Budget for all costs likely to be incurred during the remainder of the claim and ensure that all incurred costs are properly allocated to the correct phase in the Costs Budget to ensure that in the event of a successful claim the bill of costs is consistent with and accurately reflects the costs provided for in the budget. This will reduce the likelihood of challenges to "budgeted" costs and maximise costs recovery in successful claims.
All costs budgeting and costs management work is undertaken by a Costs Lawyer to ensure compliance with the CPR and Directions and ensure a high level of service.
We understand that as costs budgeting is required during the lifetime of the claim it can be inconvenient to release a file to an agent even for a short period of time and we often attend our clients' premises to ensure clients always have access to their file.
Where located within a 30-mile radius of our offices there will be no additional charge for time spent travelling or associated travel expenses.
Our experienced team of Law Costs experts are here to help.