Filing a Precedent H Costs Budget & a Precedent R Budget Discussion Report

In accordance with CPR Rule 3.13 a party’s Precedent H Costs Budget must be filed with their Directions Questionnaire where the stated value on the Claim Form is less than £50,000.00, or no later than 21 days before the first Case Management Conference in any other case. If a party fails to file a Precedent H Costs Budget despite being required to do so they will be treated as having filed a budget comprising only the applicable court fees unless the court orders otherwise.

Where the monetary value of the claim is less than £50,000 or the costs claimed are less than £25,000 the parties must only use the first page of the Precedent H Costs Budget.

In the event that a party files and serves a Precedent H Costs Budget in accordance with the CPR under paragraph all other parties in the proceedings (excluding litigants in person) must file an agreed Precedent R Budget Discussion Report no later than 7 days before the first Case Management Conference.

A Precedent R Budget Discussion Report records the budgeted costs claimed on a party’s Precedent H Costs Budget and the quantum of costs that the other party is prepared to agree in respect of each phase together with their comments as to why the full costs claimed are not agreed.

If Costs Budgets cannot be agreed between the parties the court will record the extent of the agreed costs (if any) and/or either approve or vary the claimed costs at the Costs Case Management Conference on the basis of what are reasonable and proportionate costs of each phase. In deciding the reasonable and proportionate costs of each phase of the Precedent H Costs Budget the court will have regard to, inter alia, the factors set out at CPR Rule 44.3(5) which provides as follows:-

“(5) Costs incurred are proportionate if they bear a reasonable relationship to –

(a) the sums in issue in the proceedings;

(b) the value of any non-monetary relief in issue in the proceedings;

(c) the complexity of the litigation;

(d) any additional work generated by the conduct of the paying party;

(e) any wider factors involved in the proceedings, such as reputation or public importance; and

(f) any additional work undertaken or expense incurred due to the vulnerability of a party or any witness.”