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Proportionality in costs budgeting

The High Court determined that costs budgets of £1.5m in respect of a claim with a potential value of £80-120,000 were disproportionate, notwithstanding the wider issues involved.


Miscertification of a costs budget, success fees, hourly rates and ‘good reason to depart’

Master Rowley tackles a number preliminary points in a arising from a complex clinical negligence claim, including an alleged mis-certification of the claimant’s budget giving rise to an application under CPR 44.11, level of success fee and hourly rates and ‘good reason to depart’.

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A further examination of ‘good reason to depart’ from an approved costs budget at detailed assessment

Master Rowley becomes the latest costs judge to tackle the meaning of ‘good reason to depart’ from an approved costs budget on , specifically in relation to hourly rates and valuation of claim.

costs budgeting

Budgets, Hourly Rates, Good Reason and Proportionality

On a of costs a reduction in hourly rates of the incurred costs is not a ‘good reason’ to depart from the budget in respect of the budgeted (future) costs.

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The court can only depart from agreed or approved budgets, up or down, if there is a “good reason” for doing so

Davis LJ endorses Master Whalan’s approach to where costs budgets have been agreed or approved


Costs budgeting and incurred costs, to comment or not to comment

Chief Master Marsh considers the purpose and effect of commenting on incurred costs at a costs management hearing under CPR 3.15 and PD 3E.

costs budgeting

Parties warned to stop treating costs budgeting “as a form of game”

Coulson J warns against parties adopting an unrealistic approach to and in particular with regards to Precedent R.

costs budgeting

Costs budgeting trumps detailed assessment… to an extent

Carr J: “On a on a standard basis, the costs judge is bound by the agreed or approved cost budget, unless there is a good reason to depart from it.”

Padlocked Pound

Security for costs and the role of court approved costs budgets

Sales LJ sets out the Court of Appeal’s policy regarding costs security when a party demonstrates a ‘deliberate reticence’ about its financial position, and the relevance of any court approved costs budget in the calculation of an appropriate sum