Legal Cost Specialists

Costs management fees

Practice Direction 3E – Costs Management, paragraph 2.2(1):

“the recoverable costs of initially completing Precedent H shall not exceed the higher of £1,000 or 1% of the approved budget”

Which of the following is included within the cap:

1. One hour discussion with the client explaining the figures within the budget and the costs consequences of any budget set.
2. One hour of time obtaining various quotes and estimates from experts and counsels’ clerks for inclusion in the budget.

Paragraph 2.2(2):

“All other recoverable costs of the budgeting and costs management process shall not exceed 2% of the approved budget.”

Case listed for two hour CMC to deal with directions and costs management. How much of the preparation for and attendance at the two hour hearing and any counsel’s brief fee falls within the cap?

3 thoughts on “Costs management fees”

  1. for claimants

    given the Court cannot deal with or take account of costs already incurred (but can comment so the costs have to be included)

    can costs already incurred and which you have to physically cost the file for (as opposed to guessing what’s to come)be therefore said to be part of the budget?

    does it therefore fall within the 1% cap?

    if it does, doesn’t this create a gross imbalance between claimant and defendant, where a claimant physically has to cost a file then guess the future figures, while a defendant ordinarily just has to make some figures up given their solicitors have only just been instructed and their “work done” is nominal??

    answers on a postcard please……

  2. Anonymous –

    To your first question: yes, costing the file is included in the cap.The costs incurred are included inthe toal budget figure, and they are therefore part of the budget.

    And no, it doesn’t create an imbalance (at least in theory) because the Defendants are still limited to 1% of their own approved budget which will, 9 times out of 10, be substantially lower than 1% of the Claimant’s own approved budget. So the Defendant is not getting any extra leeway.

  3. @ Cash
    I do claimant and defendant budgets

    Claimant – usually a day and a half at least just costing the file to get the cost details for what’s gone on; then figure out what’s left to do and plan for that, an extra 90 minutes and then do Form H

    defendant – they’ve done nothing, so 1 hour estimating figures and completing form H

    For the claimant I can charge 1% or £1k – the average comes in at £120k I’ve found, so I get £1200 for nearly 2 days work. If I was doing a traditional bill (I’m doing the costing after all) I’d get at least £2600.00

    For the Defendant I get £1k for 1 hour making up figures

    No imbalance??? Get real!! As usual Defendants get it cheap and easy – reminds me of the great unanswered question, how many Defendant CLs actuall can draw bills . Answer? None, the insurers have stitched the system up so well they get money for nothing!

    I’m off to the Dark Side to make a mint

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