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Wednesday 6 April saw the introduction of changes to the costs management regime. The new rules are subject to transitional arrangements such that the changes will only apply to proceedings commenced on or after Wednesday 6 April. It may therefore be a number of months before most practitioners have to consider the new rules in practice but it is always advisable to be prepared. So what are the main changes to bear in mind?
There is a mixture of new and amended provisions. In summary:
CPR 3.13 now sets out that the costs budget should be filed no later than 21 days before the first case management conference unless the stated value of the claim on the claim form is less than £50,000 in which case it must be filed with the directions
questionnaire. This is much earlier than previously.
Various changes have been made to the costs budget, these include:
This has been updated and you can access a document showing the changes made here.
Attention is drawn to:
A new costs precedent, known as Precedent R, has been introduced. Each party is required to file a BD report no later than 7 days before the first case management conference. The form is filled in with the other side’s total figures
for each phase and then an offered amount for each phase which would result in agreement are set out along with a very brief explanation of why, if applicable, there is no agreement between the parties. Issues may arise in cases
concerning multiple parties which could lead to a party having to provide a Precedent R for each of the other parties involved.
For ease of reference, we provide hyperlinked PDFs of the old rules CPR 3 and CPR PD 3E.
This article was first published on Lexis®PSL Dispute Resolution on 4 April 2014. Click here for a free trial.
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Janna is a dispute resolution lawyer. She deals primarily with cross border issues and is active in the work being undertaken in relation to the implications of Brexit for Dispute Resolution lawyers. Janna also heads up a LexisNexis costs team bringing together expertise from across the company to deal with the costs issues facing the profession.
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