costs budgeting webinar professor dominic regan teresa aitken, costs lawyer deborah burke, costs...
TRANSCRIPT
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Costs Budgeting Webinar Professor Dominic Regan
Teresa Aitken, Costs Lawyer Deborah Burke, Costs Lawyer
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Introduction The Speakers…….Professor Dominic Regan Professor at City University, London, columnist for New Law Journal and special adviser to the ACL.
Teresa AitkenCosts Lawyer & Managing Director of PI Costing Ltd
Deborah BurkeCosts Lawyer & Director of Deborah Burke Costing Ltd
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Introduction
1. Key Features of Costs Management2. Getting the Budget right 3. Planning
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Overview
Q - What is Costs Management?
1. An exchange of budgets2. Consideration of budgets by the Court3. The Court managing a case4. Costs are assessed in accordance with the approved
budget
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Q – Where can the new regime be found?
• CPR 3.11 to 3.18 & PD 3E• 1st April 2013 • New Precedent H
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Q - Why do firms need to engage in the process of Costs Management
1. From 1 April 2013 Mandatory for all Multi-Track cases2. CPR 3.143. CPR 3.18
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It will not apply to:-
1. Admiralty and Commercial Courts2. Cases where there are fixed or Scale Costs3. Where the Court otherwise orders
In addition:
• Less than £25,000• Litigants in Person
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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
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Completing Precedent H
This should not be a new skill for litigators…….
Jefferson v National Freight Carriers [2001] EWCA Civ 2082
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Completing Precedent H
Need to consider……
1. Complexity2. Value3. Likelihood of settlement4. Risk5. Likely shape of future litigation
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Completing Precedent HThen….
1. How long the anticipated work will take 2. Level of fee earner 3. Counsel 4. Other experts 5. Other disbursements
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Completing Precedent HTips….
1. Accurate Time Recording 2. Use the correct hourly rates 3. Cement margin of error 10/15%
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Completing Precedent H
Q - How do fee earners complete the “Assumptions”?
• Set out on front Page
• Getting the Assumption right is critical
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Completing Precedent H
Tips…..
• State the obvious• Separate document • Consider your opponent’s assumptions• If there are no assumptions
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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
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Q - So you have got the budget in draft form, what next?
• Look at it objectively • Proportionate • Be realistic • Talk
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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)
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Tips…..
• Inform your client within 7 days• Undertake regular reviews • The Court will have regard to any available
budgets
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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
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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
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Q - What happens about the costs which a client has incurred before the first budget is filed at Court?
• Not retrospective • Nevertheless influence decisions
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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
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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
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Q - Is there any good news from Case Law?
Safety Net Security Limited v Leonard Coppage and Freedom Security Solutions Ltd
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Conclusion
• It’s happening • Get ready• Engage• Use your Costs Lawyer