Cost budgeting in multi-track cases

There are a strict set of rules and regulations for late cost budget submissions and they are clearly laid out for legal professionals to refer to. Yet, there are many cases that still miss the deadline and budgets will be filed or served late. Cases with a pleaded value of £50,000 or less will be filed and exchanged with the directions questionnaires. All other cases should be filed and exchanged 21 days before the first CMC, unless otherwise stated by the appointed court. 

What is a multi-track case?

The multi-track usually deals with very complicated cases with a value of £25,000 or more, but it also gives the court the ability to deal with cases in the most suitable way according to the needs of that case. Thus, unlike the other tracks, there is no standard procedure for multi-track cases. 

Cost budgets and Precedent H

A cost budget is a document detailing all of the base costs incurred to date and all costs that may occur for the entirety of the case, up to and including the trial. It’s important to note VAT and any additional liabilities must be excluded when it comes to totalling the budget figures. Cost budgets are important in multi-track cases to give a guide on how the finances should be organised and states a budget should be in the form of a Precedent H. These costs will be subsequently divided into incurred and anticipated costs.

Precedent H is the format in which cost budgets are prepared in legal cases. It clearly lays out a party’s legal costs and estimated costs during a trial. The Precedent H is a formal document and therefore has to be presented in a landscape with an easily legible font and clear, concise format.

When a cost budget is not required

In the instance the value of the claim exceeds more than £10m or if the claim has been presented on behalf of someone who is under the age of 18, a cost budget would not be required. This is known as a minor claim. Another instance to note is if the client has limited or a severely impaired life expectancy, this would be five years or less remaining. 

As stated above, the court can choose in exceptional circumstances to display budgeting. In this case, a cost budget would also not be necessary. The court has complete discretion to dismiss the exceptions listed above; the only way of guaranteeing an outcome in this area is to seek clarification. The court holds complete power to make orders in relation to cost management, where deemed appropriate. 

Submitting a cost budget

A submission of legal costs budget is required if you are a party to a multi-track case. 

This type of budget is also referred to as a Precedent H and is necessary to manage the amount of costs which are recoverable. This is by either party once court proceedings have come to an end. 

Late submission

If the deadline for submitting a cost budget is missed, the defaulting party should make an application for relief to prevent potential sanctioning. This must be done as soon as they become aware of the lateness. They should also file the cost budgets in conjunction with the aforementioned relief application.