Costs Budgeting Webinar
Professor Dominic Regan
Teresa Aitken, Costs Lawyer
Deborah Burke, Costs Lawyer
Introduction
The Speakers…….
Professor Dominic Regan
Professor at City University, London, columnist for
New Law Journal and special adviser to the ACL.
Teresa Aitken
Costs Lawyer & Managing Director of PI Costing Ltd
Deborah Burke
Costs Lawyer & Director of Deborah Burke Costing Ltd
Introduction
1. Key Features of Costs Management
2. Getting the Budget right
3. Planning
Overview
Q - What is Costs Management?
1.
2.
3.
4.
An exchange of budgets
Consideration of budgets by the Court
The Court managing a case
Costs are assessed in accordance with the approved
budget
Q – Where can the new regime be found?
• CPR 3.11 to 3.18 & PD 3E
• 1st April 2013
• New Precedent H
Q - Why do firms need to engage in the process of Costs
Management
1. From 1 April 2013 Mandatory for all Multi-Track cases
2. CPR 3.14
3. CPR 3.18
It will not apply to:1. Admiralty and Commercial Courts
2. Cases where there are fixed or Scale Costs
3. Where the Court otherwise orders
In addition:
• Less than £25,000
• Litigants in Person
Completing Precedent H
Q - How will a fee earner go about completing Precedent H
Phases
•
•
•
•
•
Pre-action costs
Issue/pleadings
CMC
Disclosure
Witness statements
•
•
•
•
•
Expert reports
PTR
Trial preparation
Trial
ADR/Settlement
discussions
Completing Precedent H
This should not be a new skill for
litigators…….
Jefferson v National Freight Carriers [2001]
EWCA Civ 2082
Completing Precedent H
Need to consider……
1.
2.
3.
4.
5.
Complexity
Value
Likelihood of settlement
Risk
Likely shape of future litigation
Completing Precedent H
Then….
1.
2.
3.
4.
5.
How long the anticipated work will take
Level of fee earner
Counsel
Other experts
Other disbursements
Completing Precedent H
Tips….
1. Accurate Time Recording
2. Use the correct hourly rates
3. Cement margin of error 10/15%
Completing Precedent H
Q - How do fee earners complete the “Assumptions”?
• Set out on front Page
• Getting the Assumption right is critical
Completing Precedent H
Tips…..
•
•
•
•
State the obvious
Separate document
Consider your opponent’s assumptions
If there are no assumptions
Completing Precedent H
Q - What does the reference to “Contingencies” mean?
Contingencies are different from assumptions:•
•
An application for security for costs
An application for specific disclosure
Q - So you have got the budget in draft form, what
next?
•
•
•
•
Look at it objectively
Proportionate
Be realistic
Talk
Q - Once the budget is exchanged and filed at Court, can
the fee earner just sit back?
•
•
•
•
No
Consider the opponent's budget
Consider the opponent’s assumptions
CPR 3.15(1) and (2)
Tips…..
• Inform your client within 7 days
• Undertake regular reviews
• The Court will have regard to any available
budgets
Q - What happens if my budget becomes inaccurate?
• Try to agree a revised budget with the
opponents
• File and serve with the Court
• Attendance Note
• Court will then approve/vary/disapprove
revisions
Q - If a costs management order is not made, am I off
the hook as a litigator?
•
•
•
•
•
No!
Section 6
Amend to apply budgets
A statement of reasons
20 % rule
Q - What happens about the costs which a client has
incurred before the first budget is filed at Court?
• Not retrospective
• Nevertheless influence decisions
Q - Will I get paid for preparing a budget?
• £1000 or 1% of the approved budget
• Total costs of the costs must not exceed 2% of
the approved budget
Practical Examples from Case Law
Q - Tell us about the Sylvia Henry case
Henry v News Group Newspapers Ltd, SCCO, 16
May 2012, Senior Costs Judge Hurst
Q - Is there any good news from Case Law?
Safety Net Security Limited v Leonard Coppage
and Freedom Security Solutions Ltd
Conclusion
•
•
•
•
It’s happening
Get ready
Engage
Use your Costs Lawyer