Costs Budgeting A practical approach in an uncertain regime Book

Costs Budgeting A practical approach in an uncertain regime Book
  • Page 1

    8Costs Budgeting: A practical approach in an uncertain regimeAlthough costs budgeting has now been in place for over 20 months, the detailed implementation of the scheme is still relatively untested” per Warby J in Yeo v Times Newspapers Ltd [2015] EWHC 209 (QB).The costs budgeting regime has ...

  • Page 2

    9party “framing” their claims for simply £1 more than £10 million in order to avoid any consideration by the Court of the proposed costs (no matter how disproportionate or inflated they may be). Accordingly, in circumstances where the value of the claim itself is disputed, parties can, and,...

  • Page 3

    10“As a matter of good practice, it is suggested that clients and their practitioners consider proportionality of the costs to the dispute from the outset.”

  • Page 4

    11Making the right assumptions and planning for contingencies Compiling the estimated costs sections of Precedent H is more challenging.It is not always clear what costs fall within each of the distinct phases of Precedent H. The Guidance Notes are instructive, but the individual practitioner’...

  • Page 5

    12Contingencies• A contingent cost is marked in Precedent H as an additional phase and, according to the Guidance Notes, must reflect “anticipated costs” which do not naturally fall within one of the pre-set phases. • In Yeo, Warby J stated that work should be included as a contingency ...

  • Page 6

    13In Venus Asset Management Limited, both parties applied for retrospective revisions to their approved budgets on the basis that the costs actually incurred were greater than the budgeted figures. In refusing the application, Chief Master Marsh held that the language used in the CPR clearly poin...

  • Page 7

    14Proportionality and approval of budgets The cases to date do not provide a coherent approach to the questions of reasonableness and proportionality in budgeting terms. In Yeo, it was suggested that, whilst the Court’s primary consideration when approving budgets is whether the total costs pro...