News | Budgeting

Amendments To The Costs Budgeting Rules And Precedent H

17 April 2014

Following an amendment to CPR 3.12, all multi-track cases valued at less than £10,000,000 and commenced on or after 22 April 2014, will now be subject to the courts’ costs management and costs budgeting powers in respect of costs.  From that date cases to which cost management applies will be more clearly defined and the previous exemptions from costs budgeting, such as cases in the Admiralty and Commercial Courts and cases valued in excess of £2,000,000 in the Chancery Division, TCC and Mercantile Courts will be removed.

The courts will have discretion to implement costs management in cases that fall outside the above criteria and parties will be able to apply for costs management if it is deemed appropriate by the circumstances of the individual case.

Also, from 22 April 2014 a revised Precedent H must be used for Costs Budgets filed with the court and exchanged with parties under the courts’ costs management rules.  The change is only in respect of the wording on the front of the Precedent H, which has been revised to remove confusion regarding what is being certified and the importance of that certificate.  The revised wording is as follows:

“This estimate excludes VAT (if applicable), success fees and ATE insurance premiums (if applicable), costs of detailed assessment, costs of any appeals, costs of enforcing any judgment and [complete as appropriate]

Statement of Truth

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.

Signed                          Date


If you have any questions regarding these changes or costs budgeting generally please feel free to contact one of the partners.