DR: Costs Management Flashcards
(16 cards)
What is the purpose of budgets in the costs management regime?
To estimate future costs and manage expenses in litigation
Budgets help in establishing reasonable and proportionate costs for the proceedings.
Which Civil Procedure Rules (CPR) support the costs management regime?
CPR 3.12 to 3.18 and 3D PD
These rules outline the framework for costs management in civil litigation.
In which cases does the costs management regime not apply by default?
- Small claims track, fast track, or intermediate track claims
- Claims for £10 million or more commenced on or after 22 April 2014
- Claims that are not fully quantified or non-monetary valued at £10 million or more
- Claims by or on behalf of persons under 18 after 6 April 2016
- Claims subject to fixed costs or scale costs
CPR 3.12 outlines exceptions to the costs management regime.
What is a budget as defined in the CPR Glossary?
‘An estimate of the reasonable and proportionate costs (including disbursements) which a party intends to incur in the proceedings.’
This definition highlights the purpose of budgets in managing litigation costs.
When should budgets be filed for claims with a stated value of less than £50,000?
With the parties’ directions questionnaires
This requirement ensures timely submission of budget information.
What is the role of budget discussion reports?
To record the extent to which parties have agreed on budgets and to facilitate discussions before the first CMC
These reports help narrow down disputes over costs.
What happens at the costs management conference?
The court considers the parties’ budgets and budget discussion reports
This conference is crucial for determining case management directions and costs management orders.
What is the consequence of the court making a costs management order (CMO)?
It records agreed costs and approves budgets, setting limits on recoverable costs
A CMO may prevent parties from recovering costs beyond those approved in the budget.
What is required if a party fails to file a costs budget?
They will be treated as having filed a budget comprising only applicable court fees
This can lead to significant financial disadvantages in litigation.
What must parties do if there is a significant development in litigation affecting their budget?
Submit an amended budget for agreement and court consideration
This process helps keep the budget relevant to the current circumstances of the case.
True or False: The court must approve budgeted costs even if they exceed incurred costs.
False
A fundamental principle is that a party cannot recover more than what has actually been incurred.
What is the significance of the budget discussion report being filed no later than seven days before the first CMC?
It allows the court to focus on areas of disagreement between parties regarding budgeted costs
This promotes efficiency in the case management process.
Fill in the blank: A budget is an estimate of the reasonable and proportionate costs which a party intends to _______.
[incur in the proceedings]
What are the consequences of discrepancies between budgets and actual charges to clients?
Difficult conversations with clients about costs recovery
It’s important to manage client expectations regarding recoverable costs.
What form is prescribed for the costs budget?
Precedent H
This form requires practitioners to outline assumptions and contingencies for the budget.
What must a party provide if there is a difference of 20% or more between claimed costs and budgeted costs during assessment?
A statement of reasons for the difference
This requirement helps the court understand the rationale behind significant cost discrepancies.
