Understating the incurred costs in a cost budget did not amount to misconduct (Vardy v Rooney)
Dispute Resolution analysis: Mr Justice Cavanagh considered an appeal from a preliminary issues hearing relating to costs assessment proceedings following the trial in this well-publicised litigation. The defendant, Coleen Rooney, had included only the costs which were considered to be reasonable and proportionate within her budget, instead of actual expenditure. The judge agreed with the first instance decision of Master Gordon-Saker and concluded that the defendant had not acted unreasonably or improperly in the approach taken to the incurred costs of her budget. Whilst the court was critical of the lack of transparency and the failure to make clear the basis on which the incurred costs had been set out, there was insufficient evidence to suggest that the defendant had acted unreasonably or improperly so as to warrant a sanction for misconduct. This is an important decision as it will inevitably affect the approach taken by some parties regarding the incurred costs of a budget. Written by Claire Kretzmann, associate costs lawyer at Paragon Costs Solutions.