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Costs management (CPR 3 and CPR PD 3E) meaning

What does Costs management (CPR 3 and CPR PD 3E) mean?
costs management is the court-led control of litigation spend to keep costs reasonable and proportionate to the issues, achieved through costs budgeting and costs management orders. In England and Wales it is governed by CPR Part 3, Section II and Practice Direction 3E, and applies principally to Part 7 multi-track cases, subject to specified exceptions (for example, very high-value claims and Admiralty/Commercial Court cases) unless the court orders otherwise. Parties must file and exchange Precedent H budgets and, before the case management conference, a Precedent R budget discussion report. The court may approve, vary or disallow phases and make a costs management order (CMO). Approved budgets guide recoverable costs on detailed assessment; the court will not depart from them without good reason (CPR 3.18). Non-compliance can attract serious sanctions, including limiting a party’s budget to court fees (CPR 3.14). Costs management is distinct from, but complements, case management by promoting early engagement, narrowing issues and active control of proportionality throughout proceedings. In Scotland, Northern Ireland and Ireland, “costs management” is a descriptive term; there is no CPR-style mandatory budgeting. Costs/expenses are controlled through case management and post‑judgment taxation/adjudication (including Irish requirements under the Legal Services Regulation Act 2015).
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View the related Practice Notes about Costs management (CPR 3 and CPR PD 3E)

PRACTICE NOTES
Archived: Costs management orders: mapping former Practice Direction 3E to 1 October 2020 CPR and PD changes (England and Wales)

ARCHIVED: This Practice Note is archived, and is no longer maintained. This Practice Note summarises and collates the paragraphs from the old Practice Direction 3E concerning costs management orders and indicates the corresponding new or existing provisions in CPR PD 3E that superseded them on 1 October 2020 under both the Civil Procedure (Amendment No 3) Rules 2020, SI 2020/747, and the 122nd Update—Practice Direction Amendments. Previous practice direction provision, existing or new rule, and comment: Practice Direction 3E, para 7.1: Where costs budgets are filed and exchanged, the court would ordinarily and usually make a costs management order under rule 3.15. If such an order is made under rule 3.15, the following paragraphs then apply where appropriate. Existing rule: CPR 3.15(2): Where costs budgets have been filed and exchanged, the court will make a costs management order unless it is satisfied the litigation can be run justly and at proportionate cost, in line with the overriding objective, without making such an order. The...

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PRACTICE NOTES
Costs budgeting in England and Wales under the Jackson Reforms: CPR 3/PD 3E scope, £2m thresholds, budgets, filing, variation and costs management orders [Archived]

ARCHIVED: This Practice Note is kept for historical reference only. CPR provisions As a consequence of the Jackson Reforms, the courts are required to conduct both case management and costs management. Costs control is implemented through costs budgeting, which is intended to secure proactive and proportionate management of proceedings. The requirements for costs budgeting are contained in section II of CPR 3 and in CPR PD 3E. As this replaced the earlier rules on costs estimates, we have dealt with it in the same location and retitled the subject: Costs estimates and budgeting. Note: the provisions on costs budgeting originally set out in SI 2013/262 were altered very quickly by SI 2013/515 so that: the Heads of the Chancery and Queen's Bench Divisions may determine classes of cases within their divisions to which costs budgeting will not apply...

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PRACTICE NOTES
Costs Management Orders under CPR Part 3: purpose, timing, contents, review, challenges, assessment, key case law and high-value claims (England and Wales)

This Practice Note examines costs management orders (CMOs). It outlines what they are, their purpose, and how extensively the courts employ them. It explains when a CMO will be made—most often at or shortly after the first case management conference (CMC), though one can be ordered at any time. It also addresses what a CMO must contain, whether it can be overtaken or cancelled, and how to contest a CMO under CPR 3.1(7)... What are the CPR provisions for CMO? The provisions concerning CMOs are set out in CPR 3.15 and CPR PD 3D, para 12 (section F). Before 1 October 2020, these rules appeared in the former CPR PD 3E. Rule or practice direction Contents of rule or practice direction Comment CPR 3.15(5) Except in exceptional circumstances, the following costs are recoverable: The recoverable cost of initially completing Precedent H must not exceed the higher of £1,000 or 1% of the approved or agreed budget All other recoverable costs of the budgeting...

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