Manchester Shipping Ltd v Balfour Shipping Ltd & Anor

Relief Granted Following Late Filing Of A Costs Budget

Lionel Persey QC sitting as a Deputy Judge of the High Court granted the Defendants relief from sanctions following the late filing of their costs budget by 13 days. It was accepted that the breach had been inadvertent and understandable given that the Defendants had been relying on an agreed table of procedural steps to be completed before the CCMC, which made no mention of . It was found that the Defendants had “dropped the ball” but that their default was not egregious in the particular circumstances of the case.

late filing of a costs budget

No Excuses: Relief from sanctions refused following late filing of a costs budget

In another case involving the late filing of a costs budget the High Court refused the defendant relief from the sanction of CPR 3.14, thus deeming them to have filed a budget comprising applicable court fees only. The defendant had filed their budget two weeks after the deadline and did not apply for relief from sanctions until the morning of the costs and case management conference. The Hon. Mr Justice Bryan found that the breach was both serious and significant, there was no good reason for it and the application for relief had not been made promptly.

costs management

Costs management orders and costs capping orders: Cases to which the costs management rules apply

Extract from the SCCO Guide

costsbudgeting

When is a costs budget not a costs budget?

Mr Justice Walker allowed an appeal in part against the imposition of a sanction under CPR 3.14 which limited the claimant’s costs budget to applicable court fees only following the filing of a costs budget which failed to deal with the trial and trial preparation phases. The parties had agreed all other phases up to and including a proposed second CMC or PTR and it was proposed that subsequent directions and costs budget figures be left over to be dealt with at that point. Master Thornett did not accept the parties’ proposed course and determined that in failing to file a complete budget the claimant had failed to comply with CPR 3.13, thus invoking CPR 3.14. The consequence of Walker J’s decision on appeal was to disapply the sanction in respect of those parts of the budget which had been completed and agreed but to leave in place the CPR 3.14 sanction in respect of both the trial and trial preparation phases, thus depriving the claimant of the ability to recover any costs in relation to those phases.