Costs management orders
Costs management orders

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

  • Costs management orders
  • What are the CPR provisions for CMO?
  • What is a CMO and what is its purpose?
  • When will a CMO be made?
  • What information does a CMO contain?
  • Can a CMO be superseded or revoked?
  • Assessing costs when a CMO is in place
  • Assessing costs where no CMO has been made
  • Challenging a CMO using CPR 3.1(7)
  • Litigants in person
  • more

This Practice Note refers to Costs Management Orders as CMOs.

What are the CPR provisions for CMO?

Provisions in relation to CMOs are found in:

  1. proceedings commenced prior to 6 April 2016—rule 3.15 and practice direction 3E at para 7.1 onwards (section C)

  2. proceedings commenced on or after 6 April 2016—CPR 3.15 and CPR PD 3E, para 7.1 onwards (section D). A new provision was added at CPR PD 3E, para 7.10

What is a CMO and what is its purpose?

CMOs were introduced under the Jackson Reforms on 1 April 2013. They are dealt with in CPR 3.15.

A CMO is a means by which the court may manage the costs incurred by any party to the proceedings (CPR 3.15(1)). A CMO also gives the court control of the parties' costs budgets in respect of recoverable costs (CPR 3.15(3)). This essentially means that for a party to be able to recover its costs, should it win, it can only expend costs up to the amount set out for each phase in its approved costs budget. Such costs will be recoverable on assessment on a standard basis. Note: at assessment the court will only depart from the approved costs if there is a 'good reason' to do so (CPR 3.18). See below: Assessing costs when a CMO is in place.