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

A costs management order is the court’s order approving and regulating the parties’ phase‑based costs budgets in civil litigation so that recoverable costs are prospectively controlled. The regime is set out in cpr Part 3 (including rr 3.12–3.18) and Practice Direction 3E, rather than defined in statute. When making a CMO (usually at the CMC), the court approves estimated costs by phase; incurred costs are not approved, though the court may record comments (PD 3E). A party who keeps within the approved budget will, on detailed assessment on the standard basis, generally recover those budgeted sums; the court will depart from the approved figures only if there is a good reason (CPR 3.18). Budgets can be revised where there are significant developments in the litigation (CPR 3.15A). CMOs are typically used in multi‑track claims not subject to fixed recoverable costs. Costs management is generally disapplied in certain specialist courts (for example, the Commercial Court) and in very high‑value claims, unless the court orders otherwise. Jurisdiction: CMOs are a CPR mechanism used in England and Wales. Scotland, Northern Ireland and Ireland do not operate costs budgeting via CMOs; costs are managed under their own procedural rules and post‑hearing assessment/adjudication systems.