Costs management: overview
A Practice note providing an overview of the costs management regime in civil litigation, a key feature of most multi-track claims in England and Wales. This Practice note examines the core principles of costs budgeting, from preparing and exchanging litigation budgets using Precedent H to the court’s approval of recoverable costs through a Costs Management Order (CMO). It navigates the governing rules in CPR 3.12 to 3.18 and Practice Direction (PD) 3D, emphasising the critical importance of proportionality. Practitioners will find guidance on the serious consequences of non-compliance, such as the sanction under CPR 3.14, and the procedure for revising budgets following "significant developments" under CPR 3.15A. This Practice note also details the introduction of three pilot schemes for simplified costs budgeting (PD 51ZG1, PD 51ZG2, and PD 51ZG3) which commenced on 6 April 2025.
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