Background

3. Background Lord Justice Woolf with the introduction of The Civil Procedure Rules in 1999 brought into effect the concept that the Court should have a central role in the management of the proceedings. “The Overriding Objective”. The Overriding Objective required the Court to consider amongst other things the costs of litigation and to consider whether the costs are proportionate.

4. To assist the Court in the case management process The parties were required during the course of the case at • Allocation • Upon Listing To provide a note of the costs they had incurred to date and an estimateof costs likely to be incurred up to and including Trial

5. The Changes The new rules came into effect on the 1st April 2013 and apply to all cases in which proceedings were issued by the Court after that date. Under CPR Part 3 The Courts General Management Powers, a new section “Costs Management” Rules 3.12 to 3.18 were introduced

6. Multi-Track The new rules apply predominately to Multi Track cases but may if the Court so orders apply to Other Proceedings. CPR 3.12 (1) This Section and Practice Direction 3E apply to all multi-track cases commenced on or after 1st April 2013, except –

7. (a) cases in the Admiralty and Commercial Courts; (b) such cases in the Chancery Division as the Chancellor of the High Court may direct; and (c) such cases in the Technology and Construction Court and the Mercantile Court as the President of the Queen’s Bench Division may direct, unless the proceedings are the subject of fixed costs or scale costs or the court otherwise orders. This Section and Practice Direction 3E will apply to any other proceedings (including applications) where the court so orders.

8. When to Serve the Budget Rule 3.13 Unless the court otherwise orders, all parties except litigants in person must file and exchange budgets as required by the rules or as the court otherwise directs. Each party must do so by the date specified in the notice served under rule 26.3(1) or, if no such date is specified, seven days before the first case management conference.

9. The Consequences of failing to file and serve a budget Rule 3.14 Unless the court otherwise orders, any party which fails to file a budget despite being required to do so will be treated as having filed a budget comprising only the applicable court fees.

10. Form H PRACTICE DIRECTION 3E - COSTS MANAGEMENT 1 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. In substantial cases, the court may direct that budgets be limited initially to part only of the proceedings and subsequently extended to cover the whole proceedings.

11. A budget must be dated and verified by a statement of truth signed by a senior legal representative of the party. In cases where a party's budgeted costs do not exceed £25,000, there is no obligation on that party to complete more than the first page of Precedent H.(The wording for a statement of truth verifying a budget is set out in Practice Direction 22.)

12. Preparing The Claimant’s Budget Phases: • Pre action costs • Issue/pleadings • CMC • Disclosure • Witness statements • Expert reports • PTR • Trial preparation • Trial • ADR/Settlement discussions • Contingent costs

13. Pre action Does not include work already incurred in relation to any other phase of the budget

14. Statements of case Pleadings to you and I Do not include amendments to statements of case

15. CMC This includes preparation of the budget but not any subsequent CMCs

16. Disclosure Medical records or not medical records

17. Witness statements What about the opponent’s witness statements?

18. Expert reports For each expert: Instructions and enclosures Considering report and Counsel/client’s comments Further report on condition and prognosis Conference with Counsel Exchange of reports Considering Defendant’s report Obtaining expert comments on Defendant’s report Conference with Counsel Joint expert meeting Considering joint statements

19. PTR Include updated budget work if necessary

20. Trial Preparation Trial bundles and pre hearing conferences

21. Trial Attendance at hearing Counsel’s fees Expert witness fees for attendance

22. Contingent phases Trial of preliminary issues Mediation Applications to amend Applications for disclosure

23. Important points arising Counsel Expert fees Telephone calls/e-mails/letters Hourly rates Logical progression

24. Plebgate Mitchell – v- Newsgroup Newspapers Ltd (2013) EWHC 2355 (QB).

25. The Consequences of failing to file and serve a budget Rule 3.14 Unless the court otherwise orders, any party which fails to file a budget despite being required to do so will be treated as having filed a budget comprising only the applicable court fees.

26. Rule 3.9 (1) On an application for relief from any sanction imposed for a failure to comply with any rule, practice direction or court order, the court will consider all the circumstances of the case, so as to enable it to deal justly with the application, including the need – (a) for litigation to be conducted efficiently and at proportionate cost; and (b) to enforce compliance with rules, practice directions and orders. (2) An application for relief must be supported by evidence.

27. Provisional Assessment Points in dispute must be short and to the point, must identify specific points stating concisely the nature and grounds of dispute. Once a point has been made it should not be repeated