What Constitutes Good Reason to Depart Downwards from a Costs Budget?

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Posted by Michelle Barron on .

Yirenki-v-Ministry of Defence - approach to costs management orders

Dispute resolution analysis: Following an un-opposed appeal from a costs and case management order of Master Davison in a personal injury action, Mr Justice Jacobs concluded that the Master was wrong to adopt the approach the costs budgets in the way that he did, which was by reference to the number of hours that each fee earner should require. This was contrary to the provisions set out in Practice Di-rection 3E— Costs Management (CPR PD 3E). He should instead have simply adopted a revised figure for the total of each phase. The Master further erred in ordering, in relation to the budgeted costs and hourly rates, that these could be revisited at detailed assessment by ordering that it remained open to the parties ‘…to dispute those matters (and to that extent the figure for each phase) at a detailed assessment.’ 

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Posted by Michelle Barron on .