Costs budgeting—completing Precedent R (costs budget discussion report)

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Costs budgeting—completing Precedent R (costs budget discussion report)
  • Which CPR provisions apply?
  • What is Precedent R?
  • Completing Precedent R—stages of completion
  • Completing Precedent R—information to be provided

Costs budgeting—completing Precedent R (costs budget discussion report)

On 1 October 2020, changes to both section II of CPR 3 and CPR PD 3E dealing with costs budgeting came into force through the Civil Procedure (Amendment No 3) Rules 2020, SI 2020/747 and the 122nd update—practice direction amendments, the two documents that set out the 1 October 2020 changes. This Practice Note sets out the position from 1 October 2020. For an insight into the changes, see Practice Note: Tracker—costs management and costs budgeting review and future changes—Significant changes to costs budget rules (1 October 2020). For other information, see Q&As: Where can I access the old rules on costs budgeting in Part 3 and practice direction 3E that were in force until 30 September 2020? and Where can I find the documents that set out the October 2020 changes to CPR 3 and CPR PD 3E?

This Practice Note provides assistance in completing Precedent R, the court form setting out details of what costs in a party’s costs budget have been agreed by the other parties. There is no requirement to use Precedent R but parties are encouraged to use it (see CPR PD 3E, para 11). This Practice Note provides guidance on completing Precedent R—there are no official guidance notes to assist with completing the precedent.

This Practice Note should be read in conjunction with

Practice Note: Costs budget discussion reports (BD reports).

Which CPR provisions apply?

The rules in relation to BD reports are set out in CPR 3.13 and CPR PD 3E, paras 3 and 11 deal with BD reports.

What is Precedent R?

Precedent R is a court form. While it is not a requirement to use Precedent R itself, parties are encouraged to use the form annexed to the CPR PD 3E, para 11.

The LexisSmart form for Precedent R is a PDF form that is fillable. The boxes that need to be completed will expand automatically as you type so enabling you to add all the text you require. See Precedent: Precedent R—costs budget discussion report.

Completing Precedent R—stages of completion

Precedent R is completed in a series of stages as set out below. Party A is the party that has completed the costs budget and Party B is the party that is commenting on whether they agree or disagree with the costs set out in the costs budget.

Stage 1: Party A completes its part of Precedent R by:

  1. completing the court details ie party, court and case number

  2. inserting the date of the case and costs management conference (CCMC)

  3. inserting the requisite figures into columns B, C, D and E that deal with its incurred costs and budgeted costs

Stage 2: Party A and Party B discuss the report.

Stage 3: Party B’s responses are added into columns F, G and H together with their comments in columns I/J.

Stage 4: the judge, at the CMCC, will add their figures and comments into columns K, L and M.

Completing Precedent R—information to be provided

The following table is aimed at highlighting for each party the information that it is required to add into the columns of the spreadsheet.

Column in the spreadsheet of Precedent RInformation requiredComment
Column AThis part of the precedent does not require completion by either party. It sets out the litigation phasesThese mirror those phases set out in the costs budget ie Precedent H.
Column B
Party A
Incurred costsThis sets out the total costs already incurred for each phase by the party producing the BD report. The amounts will be those as calculated in Precedent H.
The purpose of column B is to provide a quick reference point for the judge to see what has already been incurred for each phase.
The final figure in this column is the total of all the party’s incurred costs.
Columns C, D and E
Party A
Budgeted costs—claimedThis sets out the budgeted costs for each phase that the party producing the BD report has calculated will be required during the proceedings.
Column C

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