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Are we all ready Paul Reason Costs Lawyer for change? A new CPR rule 44.4(5) is to be introduced. This rule will state as follows, 3.14 44.4(5) Costs incurred are proportionate if they bear a reasonable relationship to: (a) (b) (c) (d) (e) the sums in issue in the proceedings; the value of any non-monetary relief in issue in the proceedings; the complexity of the litigation; any additional work generated by the conduct of the paying party; and any wider factors involved in the proceedings, such as reputation or public importance. Unless the court otherwise orders, any party which fails to file a budget despite being required to do so shall be treated as having filed a budget comprising only the applicable court fees. 3.15(1) In addition to exercising its other powers, the court may manage the costs to be incurred by any party in any proceedings. (2) The court may at any time make a “costs management order”. By such order the court will: (a) The heart of the matter is contained in the new CPR rules 3.11 to 18, PD 3E and the new precedent H for producing costs budgets. (b) record the extent to which the budgets are agreed between the parties; in respect of budgets or parts of budgets which are not agreed, record the court’s approval after making appropriate revisions. The details are as follows: (3) If a costs management order has been made, the court will thereafter control the parties’ budgets in respect of recoverable costs. (A) ADDITIONS TO CPR 3 II. COSTS MANAGEMENT 3.12 (1) This Section and Practice Direction 3E apply to all multi-track cases commenced on or after 1st April 2013 in: (a) (b) a county court or the Chancery Division or Queen’s Bench Division of the High Court (except the Admiralty and Commercial Courts) unless the proceedings are the subject of fixed costs or scale costs or the court otherwise orders. This Section and Practice Direction 3E shall apply to any other proceedings (including applications) where the court so orders. 3.16 (1) Any hearing which is convened solely for the purpose of costs management (for example, to approve a revised budget) is referred to as a “costs management conference”. (2) Where practicable, costs management conferences should be conducted by telephone or in writing. 3.17 (1) When making any case management decision, the court will have regard to any available budgets of the parties and will take into account the costs involved in each procedural step. (2) (2) 3.13 6 The purpose of costs management is that the court should manage both the steps to be taken and the costs to be incurred by the parties to any proceedings so as to further the overriding objective. Unless the court otherwise orders, all parties except litigants in person must file and exchange budgets as required by the rules or as the court shall otherwise direct. Each party must do so within 28 days after service of any defence. Paragraph (1) applies whether or not the court has made a costs management order. 3.18 In any case where a costs management order has been made, when assessing costs on the standard basis, the court will – (a) (b) have regard to the receiving party’s last approved or agreed budget for each phase of the proceedings; and not depart from such approved or agreed budget unless satisfied that there is good reason to do so.”