COST BUDGETING: THE CASES AND POSTS IN ONE PLACE

There is a specific section on relief from sanctions on this blog which links to all the posts and related cases on CPR 3.9.  Here I am starting to do the same for costs budgeting.  Here, however, I aim to be more thematic. This is still a work in progress, the newest posts are here at present. This post is likely to be updated and revised regularly.

SPECIFIC HEADINGS

The headings below are

• Judicial guidance on budgets and the budgeting process

• Guidance and links on costs budgets.

• Cost budgets served late

• The budget on asssessment

• Revising the budget

• Incurred costs

• “Overspending” the budget

• Proportionality

• Procedure and the budget

• Part 36 and budgets

• Appealing cost budgets

• General guidance on costs budgeting

• Older posts on budgeting

JUDICIAL GUIDANCE ON BUDGETS AND THE BUDGETING PROCESS

Those judgments when judges have given general guidance as to budgeting.

• Important guidance from Master McCloud: How should the costs of budgeting be dealt with in Form H and the final bill? (Considers the case of  Woodburn v Thomas (Costs budgeting) [2017] EWHC B16 (Costs)
• “We will fight them on the budget”: Costs Budgeting: Stop playing procedural games: Coulson J provides clear Guidance.  (Considers the case of Findcharm Ltd -v- Churchill Group Ltd [2017] EWHC 1109 (TCC).
• Ouch! Thinking of drafting a costs budget? Best read this first (GSK Project Management Ltd -v- QPR Holdings Ltd [2015] EWHC 2274 (TCC)).
• Guidance given as costs budgeting in practice: contingencies, rates and timing: Yeo -v- Times Newspapers Limited ( Tim Yeo MP -v- Times Newspapers Limited [2015] EWHC 209 (QB)).
• Costs, budgets and “strategy”: The cases to read.

GUIDANCE AND LINKS ON COSTS BUDGETING GENERALLY

Posts and links to advice about budgeting.

• Help with costs budgeting and precedent H: All the useful links in one place – updated.
•  On-line guidance to filling in Form H
•  Updated Links to filling in Form H and Costs Budgeting
• Guidance is given in Costs Management Hearings and Form H: a useful Schedule
• The blank “Scott Schedule” can be found at Costs Hearing and Form H a blank Schedule
• Checklists can be found in Costs  and Costs Budgeting: essential checklists
• There are useful issues discussed in Case Management and Costs budgeting: Guidance from Birmingham Mercantile Court
• Finally it is always helpful to look at Guidance from the Bench on post Jackson litigation, this includes specific links to costs budgeting
• Costs and costs budgeting: some essential checklists 
• Costs, costs budgeting and making a living: the prequel to the essential checklist

LATE COST BUDGETS

The late service of costs budgets remains a common problem. These are cases where late service has been considered and posts on the consequences of late service.

• Costs budget served two months late: relief from sanctions allowed: delay does not always give rise to a significant breach.
• Another Late Costs Budget: Relief from sanctions granted to errant Defendants who served budget 10 days late. (Considers the case of Mott & Anor v Long & Anor [2017] EWHC 2130 (TCC)).
• Cost Budget One Day Late: Relief from sanctions refused: Don’t make mountains out of molehill but put things rights – quickly. 
• When circumstances change after a budget is confined to court fees: decision to alter budget upheld (Asghar -v- Bhatti[ 2017] EWHC 1702 (QB))
• No relief from sanctions when costs budgets filed late: the decision in detail (Jamadar -v- Bradford Teaching Hospitals NHS Trust [2016] EWCA Civ 1001)
• Failing to file a cost budget and refusal to grant relief from sanctions: a harsh lesson
• Costs budget served late: relief from sanctions allowed on appeal  (Murray -v-BAE Systems PLC (Liverpool County Court, 1st April 2016) (The judgment is available here MURRAY V BAE FINAL)
• The new Part 36: Part 4: Where a costs budget is limited to court fees
• Preliminary Applications: Departing from cost budgets and failure to serve cost schedules: A High Court decision(Simpson -v- MGN Limited [2015] EWHC 126 (QB)).

THE BUDGET ON ASSESSMENT

The part that the budget plays on the final assessment of damages remains controversial.

• Is the budget definitive on assessment? Case Identified: Two trains of thought continue.
• Is the budget definitive on assessment? More cats, more pigeons: there are now two trains of thought on the hourly rate 
• Costs budgets hourly rate in the budget are not determinative of the hourly rates on assessment: a cat among the pigeons.
• Costs Budgeting and the Final Bill: Harrison in the Court of Appeal (Considers the case of Harrison -v- University Hospitals Coventry & Warwickshire Hospital NHS Trust [2017]  EWCA Civ 792).
• Merrix on appeal to the High Court Judge: Costs budgeting is as definitive for paying party as it is for receiving party: Judgment Today. (Considers the case of Merrix -v- Heart of England NHS Foundation Trust [2017] EWHC 346 (QB).
• Judge uses costs budget to assess costs at the end of a trial: The relevance of budget * when should the court go outside it?  (Considers the case of Sony Communications International AB -v- SSH Communications Security Corporation [2016] EWHC 2985 (Pat)).
• A judgment on the relationship between costs budgeting and the assessment of costs: mapping & surveying the terrain

REVISING THE BUDGET

Revising a budget is not simple.  There are few cases where it has been allowed.

• Another example of the difficulty in revising a budget: An acute change of case is required. (Warner -v- The Pennine Acute Hospital NHS Trust  (Manchester County Court 23rd September 2016) (available here warner-v-pennine-acute-hospital-nhs-trust-23-sep-16-approved-judgment).
• What is meant by a “significant development”? Amending the costs budget when claim doubles in size: Claimant gets the boot
• When circumstances change after a budget is confined to court fees: decision to alter budget upheld (Asghar -v- Bhatti[ 2017] EWHC 1702 (QB))
• Striking out witness statements because of irrelevant material and “significant developments” in relation to changes of cost budgets (Yeo-v-Times Newspapers Ltd [2015] EWHC 2132 (QB).

INCURRED COSTS

• Incurred Costs and Cost Budgeting: Two recent cases (Considers the case of Harrison -v- University Hospitals Coventry & Warwickshire Hospital NHS Trust [2017]  EWCA Civ 792 and Sir Cliff Richard OBE -v- The BBC & Chief Constable of South Yorkshire Police [2017] EWHC 1666(Ch)).
• Costs incurred pre-budget are highly relevant: future costs could be drastically reduced
• Don’t stop me now: Cliff’s costs budgeting:incurred costs; the cap on the costs of budgeting and preparation for trial.
• Incurred costs  proportionality and budgeting means a case should not be struck out.

“OVERSPENDING” ON THE COSTS BUDGET

Considers the consequences of a litigant going beyond the budget.

• Overspending on your costs budget? Better tell your client
• No indications given from trial judge in relation to exceeding costs budget: the appropriate approach to interim costs where the costs have exceeded the costs budget
• Costs of experts and going outside the costs of budget: The High Court refuses to extend budgeted items after a trial (Parish -v- The Danwood Group Ltd [2015] EWHC 940(QB)
  • Taking a dim view of the costs budget: strong words from the TCC: The practical consequences of overblowing the budget (CIP Properties (AIPT) Limited -v- Galliford Try Infrastructure Ltd [2015] EWHC 481 (TCC)).
  • Joinder of a party for costs, indemnity costs & comments on costs outside the cost budget: Excelerate Technology Round 2 (Excelerate Technology Ltd -v- Cumberbatch [2015] EWHC B1 Mercantile).
  • Preliminary Applications: Departing from cost budgets and failure to serve cost schedules: A High Court decision(Simpson -v- MGN Limited [2015] EWHC 126 (QB)).

PROPORTIONALITY

Proportionality is at the centre of the modern consideration of costs. Some of these posts consider proportionality and costs generally, not just at the budgeting stage).

• Don’t stop me now: Cliff’s costs budgeting:incurred costs; the cap on the costs of budgeting and preparation for trial.
• Incurred costs  proportionality and budgeting means a case should not be struck out.
• Extraordinary amount of costs causes judge great concern: RBS costs estimates greatly exceeded – now £129 million.
• Proportionality, assessment and premiums: The need for careful case planning: £72,320 reduced to £24,604. (Considers the case of Rezek-Clarke -v- Moorfields Eye Hospital NHS Foundation Trust [2017] EWHC B5 (Costs)).
• Proportionality: We will, we will rock you.
• Proportionality II : The extended album edition.
• Proportionality does not affect a proportionate costs order.
• Proportionality and costs: a judgment on appeal
• Costs management and proportionality in action.  (Considers Agents’ Mutual Limited -v- Gascoigne Halman [2016] CAT 21)
• Costs budgeting: Proportionality; city firms & counsel when there is £16 million at stake (Considers the case of Group Seven Limited -v- Nasir [2016] EWHC 629 (Ch)
• Costs budgeting, proportionality and group litigation (Various Claimants -v- Sir Robert McAlpine & others [2015] EWHC 3543 (QB)).
• Proportionality, assessment and the costs of budgeting: senior courts costs office decision today (BP -v- Cardiff & Vale University Local Health Board [2015] EWHC B13 (Costs)).
• Receivers, Extensions of time and rigorous costs budgeting to ensure proportionality
• A clever ploy: hire expensive lawyers and then argue costs are disproportional.
• Proportionality, costs and payments on account: a High Court decision.
  • “That proportionality judgment”: 10 key points.
  • Budgets, proportionality & disclosure
  • Proportionality, assessment and the costs of budgeting 
  • Proportionality, bundles & £3 million spent on costs.
  • More on summary assessment of costs and proportionality.
  • A working example of proportionality in practice.
  • Rigorous costs budgeting to ensure proportionality.
  • Enterprise, Proportionality, witness statements & unnecessary costs.
  • Proportionality and survival for litigators Part 1
  • Proportionality and survival for litigators Part 2.
  • Proportionality and survival for litigators 3
  • Costs, proportionality and getting the budgets right.
  • Costs, parties & Proportionality 
  • An assessment of costs bites the dust.
  • Proportionality and costs: it applies to big cases as well.
  • What is meant by proportionality?
  • Costs budgeting & proportionality when there is £16 million at stake.

PROCEDURE AND THE BUDGET

• Tales from Costs Law Conference III: Satellite navigation, Merrix and costs budgeting. (Considers the case of Merrix -v- Heart of England NHS Foundation Trust [2016] EWHC B28 (QB)).

• The parties cannot contract out of costs budgeting (& a little but about the without prejudice correspondence). (Considers Agents’ Mutual Limited -v- Gascoigne Halman [2016] CAT 21).

• Costs budgeting: Pilot scheme in the chancery division in Leeds
• Costs budgeting – the key dates: a quick reminder to avoid a share (but not necessarily short) shock

• New rules coming into force: costs budgeting and Qader result codified. 

PART 36 AND BUDGETS

• The new Part 36: Part 4: Where a costs budget is limited to court fees
• Costs, conduct, part 36, costs budgeting: The second judgment in Giant Car Limited. (Considers the case of Car Giant Limited -v- the Mayor and Burgesses of the London Borough of Hammersmith [2017] EWHC 197 (TCC). Here we look at the subsequent judgment on costs at [2017] EWHC 464 (TCC). 

APPEALING COST BUDGETS

There is only one case on the blog where a party has appealed a costs budget. That attempt was not successful.

• Appealing cost budgets: The relevant criteria considered and applied (Havenga -v- Gateshead NHS Foundation Trust [2014] EWHC B25(QB)).

GENERAL GUIDANCE AS TO THE BUDGET AND BUDGETING PROCESS

• Costs Budgeting in Big Cases: Cost budgets do not prevent reasonable and proportionate costs being recovered. (Considers the case of  Napp Pharmaceutical Holdings Ltd v Dr Reddy’s Laboratories (UK) Ltd & Ors [2017] EWHC 1433 (Pat)).

• Costs Budgeting and the Final Bill: Harrison in the Court of Appeal (Considers the case of Harrison -v- University Hospitals Coventry & Warwickshire Hospital NHS Trust [2017]  EWCA Civ 792).
• New rules coming into force: costs budgeting and Qader result codified. 
• Application for indemnity costs refused: the judge looks at the costs budget of the losing party. (Considers the case of MacInnes -v- Gross [2017]EWHC 127 (QB)).

• Tales from Costs Law Conference III: Satellite navigation, Merrix and costs budgeting. (Considers the case of Merrix -v- Heart of England NHS Foundation Trust [2016] EWHC B28 (QB)).

• The parties cannot contract out of costs budgeting (& a little but about the without prejudice correspondence). (Considers Agents’ Mutual Limited -v- Gascoigne Halman [2016] CAT 21).

• Costs budgeting: Pilot scheme in the chancery division in Leeds

• Costs budgeting: Its just a phase I’m going through

• Costs budgeting and litigants in person: budgeting the costs of assistance and counsel (Considers the case of Campbell -v- Campbell [2016] EWHC 2237 (Ch))
• Costs budgeting is appropriate and necessary in a high value case: but it was not appropriate to order a split trial.  (Signia Wealth Limited -v- Marlborough Trust Company Limited [2016] EWHC 2141 (Ch)

• Costs budgeting – the key dates: a quick reminder to avoid a share (but not necessarily short) shock

• Costs budgeting & David -v- Goliath: Does it give the “little guy” a chance?

• Does costs budgeting apply to a fatal accident claim where the child is a dependant? Some more detail

• Rule changes coming into force: 48 hours to go (6th April 2016 rules).

• Costs budgeting: Proportionality; city firms & counsel when there is £16 million at stake (Considers the case of Group Seven Limited -v- Nasir [2016] EWHC 629 (Ch)

• Costs, fixed costs and costs budgeting when making an interim order: all in the pink (Considers Thomas Pink Ltd -v-Victoria’s Secret UK Limited [2014])

• Changes to cost budgeting rules: key dates and times (March 2016)

• Costs budgeting, proportionality and group litigation (Various Claimants -v- Sir Robert McAlpine & others [2015] EWHC 3543 (QB)).

• Damned if you do: Damned if you don’t: Agreeing costs budgets and complying with the overriding objective

• Proportionality, assessment and the costs of budgeting: senior courts costs office decision today (BP -v- Cardiff & Vale University Local Health Board [2015] EWHC B13 (Costs)).

• Ouch! Thinking of drafting a costs budget? Best read this first (GSK Project Management Ltd -v- QPR Holdings Ltd [2015] EWHC 2274 (TCC)).

• Striking out witness statements because of irrelevant material and “significant developments” in relation to changes of cost budgets (Yeo-v-Times Newspapers Ltd [2015] EWHC 2132 (QB).

• Cost budgets in a Facebook Defamation Claim: An important example in practice. (Stocker -v- Stocker [2015] EWHC 1634 (QB)).

• Guidance given as costs budgeting in practice: contingencies, rates and timing: Yeo -v- Times Newspapers Limited ( Tim Yeo MP -v- Times Newspapers Limited [2015] EWHC 209 (QB)).

• Costs incurred pre-budget are highly relevant: future costs could be drastically reduced

• Costs budgeting and more case management in the court of protection? Expect it soon (A & B (Court of Protection: Delay & Costs) [2014] EWCOP 8)

• Want to know about onerous Part 18 questions; Disclosure, costs capping & budgets: Just google it (Hegglin -v- Persons Unknown & Google Inc [2014] EWHC 3793 (QB) ).

OLDER POSTS

·         Oct 30^th 2014 http://www.civillitigationbrief.com/2014/10/30/costs-budgets-in-high-value-cases-adr-and-case-management-a-very-important-high-court-case/·

·         29^th August 2014 http://www.civillitigationbrief.com/2014/08/29/costs-budgeting-conduct-indemnity-costs-and-payment-on-account-kellie-v-wheatley-considered/·

·         April 10^th 2014 http://www.civillitigationbrief.com/2014/04/10/cost-budget-requirements-does-not-apply-to-part-8-cases-a-case-in-point/

·         April 6^th 2014 http://www.civillitigationbrief.com/2014/04/06/what-the-jackson-report-said-2-will-costs-budgeting-reduce-costs/

·         March 3^rd 2014 http://www.civillitigationbrief.com/2014/03/03/costs-budgeting-case-management-technology-useful-documents-free-bundle-preparation-for-case-management-hearings/

·         Feb 14^th 2014 http://www.civillitigationbrief.com/2014/02/14/failing-to-sign-statement-of-truth-does-not-mean-costs-budget-was-filed-out-of-time-high-court-decision/

·         Feb 11^th 2014 http://www.civillitigationbrief.com/2014/02/11/what-happeans-when-one-budget-is-provided-instead-of-three-is-there-a-breach-and-would-the-court-grant-relief-from-sanctions/

·         Feb 10^th 2014 http://www.civillitigationbrief.com/2014/02/10/another-high-profile-costs-budgeting-error-burt-v-linford-christie/

·         Feb 7^th 2014 http://www.civillitigationbrief.com/2014/02/14/failing-to-sign-statement-of-truth-does-not-mean-costs-budget-was-filed-out-of-time-high-court-decision/

·         Jan 30^th  2014 http://www.civillitigationbrief.com/2014/01/30/apil-monitoring-of-costs-budgeting-and-relief-from-sanctions/

·         Jan 29^th 2014 http://www.civillitigationbrief.com/2014/01/29/costs-management-hearings-and-form-h-practical-guidance-and-a-useful-schedule/

·         Jan 6^th 2014 – http://www.civillitigationbrief.com/2014/01/06/on-line-guidance-on-filling-out-form-h/

·         Dec 30^th 2013 http://www.civillitigationbrief.com/2013/12/30/more-mitchell-mayhem-use-of-square-brackets-leads-to-costs-budget-being-disallowed/

·         September 26^th 2013 http://www.civillitigationbrief.com/2013/09/26/relief-from-sanctions-and-costs-budgeting-the-judgment-in-mitchell-v-news-group-newspapers-in-full/

·         August 11^th 2013 http://www.civillitigationbrief.com/2013/08/11/litigatorswant-to-work-for-nothing-then-dont-file-your-costs-budget-on-time/