The Civil Justice Council (CJC) costs working group consultation is considering whether costs budgeting, introduced as part of Lord Justice Jackson’s civil justice costs reforms, should be scrapped, reformed or retained in its current form. Critics of budgeting say it is time-consuming and that judges often lack the requisite skills.
Responding last week, however, the ACL described budgeting as a ‘useful and effective’ tool for both judges and parties. Nearly three-quarters of its members said budgeting assists at the detailed assessment.
The ACL response states: ‘Costs management has achieved what it was created to deliver: to provide judicial oversight on the cost for claims and provide a cap on what could be considered reasonable and proportionate.’
The alternatives are either ‘a return to dealing with unmanaged costs solely at the end of the claim’, or further expansion of the fixed costs regime—neither of which the ACL considers ‘suitable’.
However, the ACL did advocate reforms, including ensuring the guideline hourly rates recognise the right of regulated costs lawyers to claim the highest grade-A rates in appropriate cases.
The ACL also proposed ‘de-coupling case and costs management’, ‘updating Precedent R’ so both parties can include their comments and rebuttals within one document, which is then filed with the court ahead of any costs management conference. It also recommended clear guidance on where costs are to be considered incurred or budgeted, in order to reduce arguments, and clarifying the test for varying the costs budget, as there are currently two apparently conflicting tests.
Kris Kilsby, ACL council member, said: ‘The costs process is not perfect but it is much better than it was in 2013. We urge the working group not to throw the baby out with the bathwater.’
Law firm Kennedys, responding, also cautioned against abandoning budgeting. However, it recommended costs budgets be set only after the court has issued directions on how the case is to proceed, with claimants required to provide an estimate with the letter of claim.
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