Costs budgeting is a critical part of effective litigation, yet common mistakes can significantly limit costs recovery. This article explores frequent costs budgeting errors, including underestimating future phases, weak budget assumptions, and failing to update budgets as cases develop. It explains how early and ongoing involvement of specialist costs draftsmen can help solicitors prepare realistic budgets, manage spend, reduce disputes, and protect recoverable litigation co

Costs Budgeting – latest update to CPR heralds new Precedent T, Budget Variation Since the inception of the CPR in 1999, there have been many and varied amendments to the Rules, such that pursuant to the Civil Procedure (Amendment No 3) Rules 2020 the latest, 122nd Update to the Practice Direction comes mostly into force on 1 October 2020, with some provisions coming into force earlier on 23 August 2020. In advance of the same, and most pertinent to the realm of costs, the

VAT treatment in costs budgets is more than a technical drafting issue. The Marbrow decision affects recoverability strategy, paying party exposure, and how proportionality arguments play out at assessment.

Significant developments in litigation may justify revising a costs budget under PD 3E. Understanding when and how revisions apply protects recoverability at assessment.

A further decision as to how a Costs Management Order (“CMO”) should be interpreted upon Detailed Assessment

When Can a Costs Budget Be Revised? Costs budgets are not fixed forever. Under PD 3E, parties must revise their budget where a significant development occurs. However: Overspend alone is not a significant development A failure to understand the case at the CCMC is not a justification Late attempts to “repair” a budget are often rejected This is a key issue for paying parties seeking to limit recovery. 👉 See: Proportionality Challenges at Detailed Assessment. The Distinction

Relief from Sanction Denied for Costs Budget 1 day out of time – Lakhani & Another v Mahmud & Others [2017] EWHC 1713 (Ch). Ever since...

WHAT IS THE POINT OF COSTS BUDGETING? NOW WE HAVE THE ANSWER! – Harrison v University Hospitals Coventry and Warwickshire NHS Trust...

NEW RULES ON COSTS BUDGETING & COURT HEARING FEES Two sets of amendments to the Rules are being implemented in relation to which...

WHAT IS THE POINT OF COSTS BUDGETING? (3) We had not anticipated that we would be writing a series of articles on this subject in such...

Costs Budgeting – Update Generally The issue of costs budgeting is one which had its genesis in Jackson LJ’s Final Report of December...

ADDITIONAL LIABILITIES ARE OUTSIDE THE COSTS BUDGETING PROCESS We previously reported on the decision of Master Gordon-Saker in the...