Jurisdiction(s):
United Kingdom

Vardy v Rooney: understating incurred costs in Precedent H not misconduct absent intent to mislead; CPR 44.11 not engaged; statement of truth permits reasonable, proportionate figures (England and Wales)

Published on: 30 April 2025

Published by a LexisNexis Dispute Resolution expert

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Article summary

Vardy v Rooney [2025] EWHC 851 (KB)

What are the practical implications of this case?

This ruling broadly permits a party to present reduced incurred figures within their budget, giving the appearance of more modest pre-CCMC spend. The court confirmed that adopting this method is entirely acceptable and consistent with the statement of truth in Precedent H. That said, if there is any material indicating an intention to mislead the court about the basis on which the budget was compiled, this may point to misconduct.

It remains a hazardous tactic because, if costs are later awarded on the standard basis, recovery could be confined to the incurred amounts stated in the budget. In principle, a party should only recover above what it regarded as a “reasonable and proportionate sum” where costs are assessed on the indemnity basis. Parties should also note that budgets might not accurately mirror the actual incurred costs. Consequently, when making submissions that costs are disproportionate or unreasonable, they should request confirmation of the assumptions and basis on which their opponent’s budget has been prepared...

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