Cost management + budgeting Flashcards
(13 cards)
what claims does cost budgeting apply to?
Applies to MT claims under £10m (unless the court orders otherwise)
who and when must file cost budgets?
All parties (not inc. LIPs) must f&s budgets:
o With DQ if claim is less than £50k; otherwise
o 21 days before the FCMC
what is included in the cost budget and what form does it take?
Precedent H must be used
breakdown of incurred + expected costs and disbursements
who and when must file a cost budget discussion?
All parties (not inc. LIPs) must f&s budget discussion report 7 days before the first cost management hearing
what is included in the cost budget discussion and what form does it take?
Precedent R should be used
inc. figure sought for each stage of the litigation. Reports exchanged and party indicates whether cost agreed or not + if not any comments.
what formalities must the budgets and report comply with?
Budgets must be dated + verified by statement of truth from senior legal rep
what happens if a party fails to file a budget?
court assumes one filed for court fees only
what can a party do if a party is intentionally increasing costs?
Party can apply to the court if they consider the other is behaving oppressively causing them to spend disproportionate costs. Court can grant relief.
when will a CMO be made?
Where budgets exchanged, CMO will be made unless the court considers the litigation can be conducted justly + proportionately without one
what will the CMO record? explain.
The CMO will:
o Record agreed budgeted costs
o Record not-agreed budgeted costs + court’s approval (after any revisions)
Judge approves if costs are reasonable + proportionate (see: CPR 44)
o Record any agreed incurred costs (court cannot approve/revise)
if a CMO is made, what effect does this have on a costs order?
Standard basis court cannot depart from last approved/agreed budget without good reason (i.e. costs were much less than budgeted)
Indemnity assessed in usual way unless otherwise agreed by parties
where cost budgeting applies but a CMO was not made, how does this effect the costs order?
If there is a 20% or more difference between the costs claimed by the receiving party and those set out in their budget, the receiving party must provide reasons for the difference. The court will then make a decision.
can you depart from a cost budget? if so, how?
Budgeted costs can be revised up/downward if there is a significant development
Must be sent to o/s for agreement + then filed with court with previous budget and, if not agreed, points of difference
The court can approve/vary/disallow
