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What amounts to a significant development so as to justify variation of a costs budget? (BDW Trading Ltd v Lantoom Ltd)

Published on: 22 October 2020

Table of contents

  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Dispute Resolution analysis: The court held that a significant development includes ‘any event, circumstance or step which is of such a size and nature as to go beyond the events, circumstances and steps which were taken into account, expressly or impliedly, in the budget previously approved or agreed. A development is taken into account impliedly if it is something that was, or should reasonably have been, anticipated by the applicant for revision with regard to the previously approved or agreed budget or to any earlier budget’. An avalanche of unexpected documents plainly represented a significant development. The court accepted that this in turn generated the need for a higher budget for witness statements. Written by Professor Dominic Regan, City Law School London, who advised Sir Rupert Jackson upon costs management.

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