1. Costs Budgeting Webinar Professor Dominic Regan Teresa Aitken, Costs Lawyer Deborah Burke, Costs Lawyer

2. Introduction The Speakers……. Professor Dominic Regan Professor at City University, London, columnist for New Law Journal and special adviser to the ACL. Teresa Aitken Costs Lawyer & Managing Director of PI Costing Ltd Deborah Burke Costs Lawyer & Director of Deborah Burke Costing Ltd

3. Introduction 1.Key Features of Costs Management 2.Getting the Budget right 3.Planning

4. Overview Q - What is Costs Management? 1.An exchange of budgets 2.Consideration of budgets by the Court 3.The Court managing a case 4.Costs are assessed in accordance with the approved budget

5. Q – Where can the new regime be found? CPR 3.11 to 3.18 & PD 3E 1 st April 2013 New Precedent H

6. Q - Why do firms need to engage in the process of Costs Management 1.From 1 April 2013 Mandatory for all Multi-Track cases 2.CPR 3.14 3.CPR 3.18

7. It will not apply to:- 1.Admiralty and Commercial Courts 2.Cases where there are fixed or Scale Costs 3.Where the Court otherwise orders In addition: Less than £25,000 Litigants in Person

8. Completing Precedent H Phases Pre-action costs Issue/pleadings CMC Disclosure Witness statements Expert reports PTR Trial preparation Trial ADR/Settlement discussions Q - How will a fee earner go about completing Precedent H

9. Completing Precedent H This should not be a new skill for litigators……. Jefferson v National Freight Carriers [2001] EWCA Civ 2082

10. Completing Precedent H Need to consider…… 1.Complexity 2.Value 3.Likelihood of settlement 4.Risk 5.Likely shape of future litigation

11. Completing Precedent H Then…. 1.How long the anticipated work will take 2.Level of fee earner 3.Counsel 4.Other experts 5.Other disbursements

12. Completing Precedent H Tips…. 1.Accurate Time Recording 2.Use the correct hourly rates 3.Cement margin of error 10/15%

13. Completing Precedent H Q - How do fee earners complete the “Assumptions”? Set out on front Page Getting the Assumption right is critical

14. Completing Precedent H Tips….. State the obvious Separate document Consider your opponent’s assumptions If there are no assumptions

15. Completing Precedent H Q - What does the reference to “Contingencies” mean? Contingencies are different from assumptions:- An application for security for costs An application for specific disclosure

16. Q - So you have got the budget in draft form, what next? Look at it objectively Proportionate Be realistic Talk

17. Q - Once the budget is exchanged and filed at Court, can the fee earner just sit back? No Consider the opponent's budget Consider the opponent’s assumptions CPR 3.15(1) and (2)

18. Tips….. Inform your client within 7 days Undertake regular reviews The Court will have regard to any available budgets

19. Q - What happens if my budget becomes inaccurate? Try to agree a revised budget with the opponents File and serve with the Court Attendance Note Court will then approve/vary/disapprove revisions

20. Q - If a costs management order is not made, am I off the hook as a litigator? No! Section 6 Amend to apply budgets A statement of reasons 20 % rule

21. Q - What happens about the costs which a client has incurred before the first budget is filed at Court? Not retrospective Nevertheless influence decisions

22. Q - Will I get paid for preparing a budget? £1000 or 1% of the approved budget Total costs of the costs must not exceed 2% of the approved budget

23. Practical Examples from Case Law Q - Tell us about the Sylvia Henry case Henry v News Group Newspapers Ltd, SCCO, 16 May 2012, Senior Costs Judge Hurst

24. Q - Is there any good news from Case Law? Safety Net Security Limited v Leonard Coppage and Freedom Security Solutions Ltd

25. Conclusion It’s happening Get ready Engage Use your Costs Lawyer