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Guidance Notes on Precedent H: Budgeting Anticipated Costs in English Civil Proceedings, Schemes and Mind Maps of Law

Guidance on completing precedent h, the form used to set out a budget of anticipated costs in accordance with civil procedure rules part 3 and practice direction 3e in english civil proceedings. It covers the use of the form, where and when to include various items of work, and the importance of reasonable and proportionate costs.

Typology: Schemes and Mind Maps

2021/2022

Uploaded on 09/27/2022

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GUIDANCE NOTES ON PRECEDENT H
1. Where the monetary value of the case is less than £50,000 [or the costs claimed are less
than £25,000] the parties must only use the first page of Precedent H.
2. Save in exceptional circumstances, the parties are not expected to lodge any documents
other than Precedent H and the budget discussion report. Both are available in Excel format
on the MOJ website with PD 3E. If the Excel format precedent on the MOJ website is used ,
the calculation on page one will calculate the totals automatically and the phase totals are
linked to this page also.
3. This is the form on which you should set out your budget of anticipated costs in accordance
with CPR Part 3 and Practice Direction 3E. In deciding the reasonable and proportionate
costs of each phase of the budget the court will have regard to the factors set out at Civil
Procedure Rules 44.3(5) and 44.4(3) including a consideration of where and the
circumstances in which the work was done as opposed to where the case is heard.
4. This table identifies where within the budget form the various items of work, in so far as
they are required by the circumstances of your case, should be included.
5. Allowance must be made in each phase for advising the client, taking instructions and
corresponding with the other party/parties and the court in respect of matters falling within
that phase.
6. The ‘contingent cost’ sections of this form should be used for anticipated costs which do not
fall within the main categories set out in this form. Examples might be the trial of
preliminary issues, a mediation, applications to amend, applications for disclosure against
third parties or (in libel cases) applications re meaning. Only include costs which are more
likely than not to be incurred. Costs which are not anticipated but which become necessary
later are dealt with in paragraph 7.6 of PD3E.
7. Any party may apply to the court if it considers that another party is behaving oppressively
in seeking to cause the applicant to spend money disproportionately on costs and the court
will grant such relief as may be appropriate.
8. Assumptions:
a. The assumptions that are reflected in this guidance document are not to be
repeated. Include only those assumptions that significantly impact on the level of
costs claimed such as the duration of the proceedings, the number of experts and
witnesses or the number of interlocutory applications envisaged. Brief details only
are required in the box beneath each phase. Additional documents are not
encouraged and, where they are disregarded by the court, the cost of preparation
may be disallowed, and additional documents should be included only where
necessary.
b. Written assumptions are not normally required by the Court in cases where the
parties are only required to lodge the first page.
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GUIDANCE NOTES ON PRECEDENT H

  1. Where the monetary value of the case is less than £50,000 [or the costs claimed are less than £25,000] the parties must only use the first page of Precedent H.
  2. Save in exceptional circumstances, the parties are not expected to lodge any documents other than Precedent H and the budget discussion report. Both are available in Excel format on the MOJ website with PD 3E. If the Excel format precedent on the MOJ website is used , the calculation on page one will calculate the totals automatically and the phase totals are linked to this page also.
  3. This is the form on which you should set out your budget of anticipated costs in accordance with CPR Part 3 and Practice Direction 3E. In deciding the reasonable and proportionate costs of each phase of the budget the court will have regard to the factors set out at Civil Procedure Rules 44.3(5) and 44.4(3) including a consideration of where and the circumstances in which the work was done as opposed to where the case is heard.
  4. This table identifies where within the budget form the various items of work, in so far as they are required by the circumstances of your case , should be included.
  5. Allowance must be made in each phase for advising the client, taking instructions and corresponding with the other party/parties and the court in respect of matters falling within that phase.
  6. The ‘contingent cost’ sections of this form should be used for anticipated costs which do not fall within the main categories set out in this form. Examples might be the trial of preliminary issues, a mediation, applications to amend, applications for disclosure against third parties or (in libel cases) applications re meaning. Only include costs which are more likely than not to be incurred. Costs which are not anticipated but which become necessary later are dealt with in paragraph 7.6 of PD3E.
  7. Any party may apply to the court if it considers that another party is behaving oppressively in seeking to cause the applicant to spend money disproportionately on costs and the court will grant such relief as may be appropriate.
  8. Assumptions:

a. The assumptions that are reflected in this guidance document are not to be repeated. Include only those assumptions that significantly impact on the level of costs claimed such as the duration of the proceedings, the number of experts and witnesses or the number of interlocutory applications envisaged. Brief details only are required in the box beneath each phase. Additional documents are not encouraged and, where they are disregarded by the court, the cost of preparation may be disallowed, and additional documents should be included only where necessary. b. Written assumptions are not normally required by the Court in cases where the parties are only required to lodge the first page.

  1. Budget preparation: the time spent in preparing the budget and associated material must not be claimed in the draft budget under any phase. The permitted figure will be inserted once the final budget figure has been approved by the court.

Phase Includes Does NOT include Pre-action (^)  Pre-Action Protocol correspondence

 Investigating the merits of the claim and advising client  Settlement discussions, advising on settlement and Part 36 offers  All other steps taken and advice given pre action

 Any work already incurred in relation to any other phase of the budget

Issue/statements of case

 Preparation of Claim Form  Issue and service of proceedings  Preparation of Particulars of Claim, Defence, Reply, including taking instructions, instructing counsel and any necessary investigation  Considering opposing statements of case and advising client  Part 18 requests (request and answer)  Any conferences with counsel primarily relating to statements of case  Updating schedules and counter- schedules of loss

 Amendments to statements of case

CMC  Completion of DQs  Arranging a CMC  Reviewing opponent’s budget  Correspondence with opponent to agree directions and budgets, where possible  Preparation for, and attendance at, the CMC  Finalising the order

 Subsequent CMCs  Preparation of costs budget for first CMC (this will be inserted in the approved budget)

Disclosure  Obtaining documents from client and advising on disclosure obligations  Reviewing documents for disclosure, preparing disclosure report or questionnaire response and list  Inspection  Reviewing opponent’s list and documents, undertaking any appropriate investigations  Correspondence between parties about the scope of disclosure and

 Applications for specific disclosure  Applications and requests for third party disclosure

 Any pre-trial conferences and advice from counsel  Pre-trial liaison with witnesses

Trial (^)  Solicitors’ attendance at trial

 All conferences and other activity outside court hours during the trial  Attendance on witnesses during the trial  Counsel’s brief fee and any refreshers  Dealing with draft judgment and related applications

 Preparation for trial  Agreeing brief fee

Settlement (^)  Any conferences and advice from counsel in relation to settlement  Settlement negotiations and meetings between the parties to include Part 36 and other offers and advising the client

 Drafting settlement agreement or Tomlin order  Advice to the client on settlement (excluding advice included in the pre- action phase)

 Mediation (should be included as a contingency)