I have previously commented on the problems caused by the Precedent R budget discussion report failing to distinguish between incurred and future estimated costs.
This has, in part, now been addressed by the amended Precedent R (available here).
This follows on from the new rules, that came into force on 6 April 2017, making it clear that costs management orders relate to future costs only. The amended form expressly states:
“Note: include only budgeted costs”
Nevertheless, there remain two problems with the amended form:
- It contains a “Pre action costs” phase. Why? Such costs, by their very nature, can never be future budgeted costs.
- CPR 3.15(2)(c) expressly states that when making a costs management order the court will: “record the extent (if any) to which incurred costs are agreed”. That being so, where in the form can one agree incurred costs?
Third time lucky Rules Committee?