The extended costs budgeting regime for all multi-track cases worth up to £10m will come into force on 22 April, it was confirmed today.
The amended rule 3.12 also applies budgeting to unquantified monetary claims or non-monetary claims that are valued at less than £10m, but excludes part 8 claims. It only applies to cases started on or after 22 April.
The changes were made by the Civil Procedure Rule Committee following a consultation last summer and the recommendation of the Master of the Rolls, Lord Dyson, and deputy head of civil justice, Lord Justice Richards.
Rule 3.15 has been amended so that where costs budgets have been filed and exchanged, the court will make a costs management order “unless it is satisfied that the litigation can be conducted justly and at proportionate cost in accordance with the overriding objective without such an order being made”.
Practice direction 3E has been expanded with new guidance for cases where the requirement for budgeting is not automatic.
It says that “at an early stage in the litigation, the parties should consider and, where practicable discuss whether to apply for an order for the provision of costs budgets, with a view to a costs management order being made”.
The PD suggests six types of cases where an order for budgets with a view to a costs management order “may be particularly appropriate”:
- Unfair prejudice petitions under section 994 of the Companies Act 2006;
- Disqualification proceedings pursuant to the Company Directors Disqualification Act 1986;
- Applications under the Trusts of Land and Appointment of Trustees Act 1996;
- Claims pursuant to the Inheritance (Provision for Family and Dependants) Act 1975;
- Any part 8 claims or other applications involving a substantial dispute of fact and/or likely to require oral evidence and/or extensive disclosure; and
- Personal injury and clinical negligence cases where the value of the claim is £10m or more.