Topic 8 - Case and costs management

Question 1

List some examples of the court’s general case management powers.

Answer 1

• Extend/shorten time for compliance
• Adjourn hearings
• Require attendance of parties or representatives
• Stay proceedings or judgment
• Order filing and serving of a costs budget
• Take any other step for managing the case

These powers aim to further the overriding objective.

Question 2

What does the court’s power to make orders of its own initiative entail?

Answer 2

The court can provide new directions or terminate a case without either party taking a step (CPR 3.3)

The court must include a statement in such orders about the parties’ rights to apply for variations.

Question 3

Define ‘strike out’ in the context of civil procedure.

Answer 3

Strike out is the deletion of written material from a statement of case so it cannot be relied on in proceedings

It can include deleting the entire statement of case.

Question 4

What is the difference between strike out and summary judgment?

Answer 4

Strike out focuses on the statement of case; summary judgment (CPR 24) covers cases that are weak on the facts

Applications for both are often made alternatively.

Question 5

What constitutes grounds for strike out under CPR?

Answer 5

1. No reasonable ground for claim/defence
2. Abuse of court process
3. Failure to comply with a rule, practice direction, or court order

Each ground has specific examples and implications.

Question 6

What is an example of a statement of case that may be struck out for disclosing no reasonable ground?

Answer 6

A claim stating ‘money owed £5,000’ without explaining how the debt arose

This lacks necessary factual details.

Question 7

What is considered abuse of process in the context of strike out?

Answer 7

Using court procedures for a purpose significantly different from its ordinary use

Example: A vexatious litigant.

Question 8

What happens if a party fails to comply with an order that includes a strike-out term?

Answer 8

The other party can generally obtain judgment with costs by filing a simple request at court

Sometimes, an application to court may be required.

Question 9

What are sanctions in civil procedure?

Answer 9

Measures aimed at ensuring compliance with court rules and orders

Sanctions can include reductions in interest, costs orders, or striking out statements.

Question 10

What is an ‘unless order’?

Answer 10

An order providing for an automatic sanction upon non-compliance

Example: ‘Unless the defendant serves its list of documents by [date], its defence will be struck out.’

Question 11

What is the general rule regarding time limits set by CPR or court orders?

Answer 11

They may not be extended by agreement unless specified otherwise

Exceptions exist for certain types of hearings.

Question 12

What must a party do if they fail to comply with a rule imposing a sanction?

Answer 12

Apply for and obtain relief from that sanction

Sanctions take effect automatically upon non-compliance.

Question 13

What are the three stages the court considers when applying for relief from sanctions?

Answer 13

1. Assess the seriousness of the breach
2. Consider why the default occurred
3. Evaluate all circumstances of the case

This approach is outlined in the Denton case.

Question 14

What is the significance of the Denton case regarding relief from sanctions?

Answer 14

It clarified the approach courts should take in future cases regarding relief from sanctions

The case involved three appeals on the matter.

Question 15

What distinguishes an in-time application from relief from sanctions?

Answer 15

An in-time application is made before a deadline; relief from sanctions is sought after a deadline has passed

In-time applications do not require the same considerations as relief from sanctions.

Question 16

How does the court treat an application to set aside default judgment?

Answer 16

As an application for relief from sanctions when relying on discretionary grounds

This falls under CPR 13.3.

Question 17

What is an application for an extension of time in litigation not considered?

Answer 17

It is not an application for relief from sanctions if filed before the expiry of the permitted time period

This applies even if the court deals with the application after the expiry of the relevant period.

Question 18

What is treated as an application for relief from sanctions?

Answer 18

An application to set aside default judgment when the defendant relies on the discretionary ground to set aside judgment in default (CPR 13.3)

The Denton principles should be applied in these circumstances.

Question 19

What are the four separate tracks a case can be allocated to?

Answer 19

• Small claims track
• Fast track
• Intermediate track
• Multi-track

Question 20

What is the normal track for cases with a value of not more than £10,000?

Answer 20

Small claims track (CPR 27)

Includes claims by tenants against landlords for repairs under £1,000.

Question 21

What are the conditions for a claim to be allocated to the fast track?

Answer 21

• Claim value up to £25,000
• Trial likely to last no longer than one day (five hours)
• Only one expert per party in each of no more than two expert fields (CPR 26.9(6))

Question 22

What defines the intermediate track?

Answer 22

• Claims up to £100,000
• Trial likely to last no longer than 3 days
• Oral expert evidence limited to two experts per party (CPR 26.9(7))

Question 23

What is the multi-track used for?

Answer 23

It is the normal track for all other types of case (CPR 29)

Question 24

What are the special rules for personal injury claims on the small claims track?

Answer 24

• Claims valued at not more than £10,000
• Road traffic claims with damages for personal injuries valued at not more than £1,000 (if certain conditions are met)
• Other road traffic claims limited to £5,000
• Any other personal injury claims limited to £1,500

Question 25

What is the first step in the allocation process?

Answer 25

Defence is filed

Question 26

What does the court send out after receiving a defence?

Answer 26

A notice of proposed allocation, provisionally allocating the claim to a track

Question 27

What must parties file after receiving the notice of proposed allocation?

Answer 27

Directions questionnaires ## Footnote This includes proposed directions if allocated to fast track, intermediate track, or multi-track.

Question 28

What is the purpose of the directions questionnaire (DQ)?

Answer 28

To provide information for the court to determine the most appropriate track for the case

Question 29

What happens if parties fail to comply with pre-action protocols?

Answer 29

They must explain why and may face sanctions as a result

Question 30

What is a stay in court proceedings?

Answer 30

A period during which the proceedings are paused, preventing parties from taking steps except those allowed by CPR or terms of the stay

Question 31

What happens if all parties request a stay?

Answer 31

The claim will be stayed for a month (CPR 26.5(2))

Question 32

What is disclosure in the context of court proceedings?

Answer 32

The stage where parties exchange documents relevant to the case

Question 33

What is required from each party regarding witnesses in the DQ?

Answer 33

They must name the witnesses they wish to call to trial and detail what they hope to prove

Question 34

What must parties estimate in the DQ?

Answer 34

The time needed for the trial

Question 35

What must parties file in multi-track cases regarding costs?

Answer 35

A costs budget with the DQ

Question 36

What does the DQ require parties to attempt to agree on?

Answer 36

Directions

Question 37

What criteria does the court consider when allocating a claim to a track?

Answer 37

* Financial value of the claim * Nature of the remedy sought * Likely complexity of the case * Number of parties * Value of any counterclaim * Amount of oral evidence required * Importance of the claim to non-parties * Views expressed by the parties * Circumstances of the parties

Question 38

What is the first step in determining the correct track for a claim?

Answer 38

Identify the normal track for the claim based on its value

Question 39

What example illustrates the allocation process when both parties prefer the fast track?

Answer 39

Party A brings a debt claim for £26,000 against Party B, both request fast track allocation due to simplicity and fixed costs

Question 40

What happens at the conclusion of the allocation stage?

Answer 40

The claim will have been allocated to a track with directions possibly given

Question 41

What are the key features of the small claims track?

Answer 41

* Very limited costs recovery * Fewer formalities in hearings

Question 42

What types of cases typically fall under the small claims track?

Answer 42

Personal injury cases with damages less than £1,500, disputes about parking charges, and holiday claims ## Footnote Different limits apply for personal injuries from road traffic accidents.

Question 43

What is a key feature of the small claims track regarding costs recovery?

Answer 43

Very limited costs recovery, with the court rarely ordering one party to pay costs to another ## Footnote Only fixed costs, court fees, and witness expenses may be recovered.

Question 44

How do formalities differ in small claims track cases?

Answer 44

Fewer formalities; certain CPR rules do not apply and hearings are informal with parties generally representing themselves.

Question 45

What are the standard directions for the small claims track?

Answer 45

Parties must file and serve documents 14 days prior to the hearing, bring original documents, receive 21 days notice of the hearing date, and inform the court if the case settles.

Question 46

What is the maximum duration of a fast track trial?

Answer 46

No longer than one day.

Question 47

What are the complexity bands in the fast track?

Answer 47

Complexity band 1: road traffic accident non-personal injury claims and defended debt claims Complexity band 2: personal injury claims under RTA Protocol Complexity band 3: more complex personal injury claims and possession claims Complexity band 4: complex employer’s liability disease claims and professional negligence claims.

Question 48

What is the allocation limit for the intermediate track?

Answer 48

Claims up to £100,000.

Question 49

What is the maximum length for witness statements in the intermediate track?

Answer 49

30 pages for witness statements and 20 pages for expert reports.

Question 50

What are the criteria for allocating cases to the intermediate track?

Answer 50

Single claimant against one or two defendants or two claimants against one defendant (maximum of 3 parties).

Question 51

What is the purpose of a case management conference (CMC)?

Answer 51

To identify and understand the real issues between the parties and the court, and to see if issues can be narrowed before trial.

Question 52

What must a legal representative attending a CMC be familiar with?

Answer 52

The case.

Question 53

What is required at least 14 days before the first CMC?

Answer 53

A disclosure report and electronic documents questionnaire.

Question 54

What is the purpose of the disclosure report in multi-track cases?

Answer 54

To describe relevant documents, their location, and estimate costs of standard disclosure.

Question 55

What is the maximum word count for a case summary at the CMC?

Answer 55

500 words.

Question 56

What is the default position regarding the costs management regime?

Answer 56

It applies to all cases except small claims track, fast track, intermediate track claims, and specific high-value claims.

Question 57

What can lead to disapplying the costs management regime?

Answer 57

Circumstances such as a claimant having a severely impaired life expectancy of 5 years or less.

Question 58

What claims are excluded from the costs management regime?

Answer 58

Claims that are not quantified or are for non-monetary claims valued at £10 million or more, claims by persons under 18 after 6 April 2016, claims subject to fixed costs or scale costs. ## Footnote The court can disapply the costs management regime under certain circumstances, such as when a claimant has a life expectancy of 5 years or less.

Question 59

What is the purpose of budgets in the costs management regime?

Answer 59

Budgets are estimates of future costs filed and exchanged 21 days before the first CMC, discussed by the parties, and considered by the court. ## Footnote They help determine reasonable and proportionate costs in later assessment proceedings.

Question 60

When must parties file costs budgets?

Answer 60

Parties must file budgets when the claim is less than £50,000 with directions questionnaires or 21 days before the first CMC for any other case. ## Footnote This is governed by CPR 3.13(1)(b).

Question 61

What is a budget as defined in the CPR Glossary?

Answer 61

'An estimate of the reasonable and proportionate costs (including disbursements) which a party intends to incur in the proceedings.'

Question 62

What must the statement of truth at the end of a budget read?

Answer 62

'This budget is a fair and accurate statement of incurred and estimated costs which it would be reasonable and proportionate for my client to incur in this litigation.'

Question 63

What are the potential issues arising from discrepancies between budgets and charges to clients?

Answer 63

Difficult conversations with clients regarding why they pay a different amount than what is claimed in the budget. ## Footnote Involving clients in the budgeting process can help avoid these issues.

Question 64

What is required when preparing the costs budget?

Answer 64

Budgets must be prepared carefully and may need revisions. They must use Precedent H and include assumptions and contingencies. ## Footnote The budget must be signed with a statement of truth.

Question 65

What must parties file after exchanging costs budgets?

Answer 65

Budget discussion reports indicating agreed and disputed figures for each phase of litigation and a summary of grounds of dispute. ## Footnote These must be filed no later than seven days before the first CMC.

Question 66

What happens during the costs management conference?

Answer 66

The court considers the parties' budgets and budget discussion reports, and makes case management decisions. ## Footnote This can take place at the first case management conference or in a separate hearing.

Question 67

What are the two main consequences of the court's consideration during a costs management conference?

Answer 67

* Case management decisions based on costs budgets * Costs management orders indicating reasonable costs ## Footnote Agreed figures in budgets cannot be changed by the court.

Question 68

What is a costs management order (CMO)?

Answer 68

A CMO records agreed costs budgets and the court's approval of budgeted costs, indicating they are reasonable and proportionate. ## Footnote It serves as a 'cap' on recoverable costs.

Question 69

What must a receiving party do if there's a 20% difference between claimed costs and the budget?

Answer 69

Provide a statement of reasons for the difference with the bill of costs. ## Footnote The court may reduce the recoverable sum based on this reliance.

Question 70

What is the process for revising costs budgets?

Answer 70

Submit an amended budget for agreement using Precedent T and then submit it to court for consideration. ## Footnote This is only for significant developments, not for correcting initial mistakes.

Question 71

What happens if a party fails to file a costs budget?

Answer 71

They are treated as having filed a budget comprising only applicable court fees unless the court orders otherwise. ## Footnote This can lead to significant limitations on recoverable costs.

Question 72

What is a costs and case management conference (CCMC)?

Answer 72

A hearing where costs management occurs alongside case management decisions. ## Footnote Key procedural stages are outlined before the first CMC.

Question 73

What is the timeline for filing documents before the first CMC?

Answer 73

* 21 days before: Budget * 14 days before: Disclosure report * 7 days before: Draft directions and budget discussion report. ## Footnote This ensures all necessary documentation is prepared in advance.