PRACTICE DIRECTION 3E – COSTS CAPPING This Practice Direction supplements Section III of CPR Part 3
See also Part 3, Practice Direction 3A, Practice Direction 3B, Practice Direction 3C Practice Direction 3D, Practice Direction 3F, Practice Direction 3G
| Title | Number |
|---|---|
| Section I of this Practice Direction – General rules about costs Capping | |
| When to make an application | Para.1 |
| Costs budget | Para.2 |
| Schedule of costs | Para.3 |
| Assessing the quantum of the costs cap | Para.4 |
| Section II of this Practice Direction – Costs capping in relation to trust funds | |
| Costs capping orders in relation to trust funds | Para.5 |
When to make an application
1.1
The court will make a costs capping order only in exceptional circumstances.
1.2
An application for a costs capping order must be made as soon as possible, preferably before or at the first case management hearing or shortly afterwards. The stage which the proceedings have reached at the time of the application will be one of the factors the court will consider when deciding whether to make a costs capping order.
Costs budget
2
The budget required by rule 3.20 must be in the form of Precedent H annexed to this Practice Direction.
Schedule of costs
3
The schedule of costs referred to in rule 3.20(3)—
(a) must set out –
(i) each sub-heading as it appears in the applicant’s budget (column 1);
(ii) alongside each sub-heading, the amount claimed by the applicant in the applicant’s budget (column 2); and
(iii) alongside the figures referred to in subparagraph (ii) the amount that the respondent proposes should be allowed under each sub-heading (column 3); and
(b) must be supported by a statement of truth.
Assessing the quantum of the costs cap
4.1
When assessing the quantum of a costs cap, the court will take into account the factors detailed in rule 44.5 and the relevant provisions supporting that rule in the Practice Direction supplementing Part 44. When considering a party’s budget of the costs they are likely to incur in the future conduct of the proceedings, the court may also take into account a reasonable allowance on costs for contingencies.
Costs capping orders in relation to trust funds
5.1
In this Section, “trust fund” means property which is the subject of a trust, and includes the estate of a deceased person.
5.2
This Section contains additional provisions to enable –
(a) the parties to consider whether to apply for; and
(b) the court to consider whether to make of its own initiative,
a costs capping order in proceedings relating to trust funds.
5.3
This Section supplements rules 3.19 to 3.21 and Section I of this Practice Direction
5.4
Any party to such proceedings who intends to apply for an order for the payment of costs out of the trust fund must file and serve on all other parties written notice of that intention together with a budget of the costs likely to be incurred by that party.
5.5
The documents mentioned in paragraph 5.4 must be filed and served –
(a) in a Part 7 claim, with the first statement of case; and
(b) in a Part 8 claim, with the evidence (or, if a defendant does not intend to serve and file evidence, with the acknowledgement of service).
5.6
When proceedings first come before the court for directions the court may make a costs capping order of its own initiative whether or not any party has applied for such an order.