Negotiating Costs Budgets (Precedent R)

Understanding Precedent R Negotiations for Costs Budgets

After Costs Budgets are crafted following PD 3E guidelines, submitted, and exchanged, CPR 3.13 mandates the exchange of Costs Budget Discussion Reports (Precedent R). This report, derived from the opposing party's Costs Budget, delineates agreed and contested phases, accompanied by reasons for any disputes concerning future costs. Exchanged exclusively for negotiation, these reports facilitate discussions to establish proportionate costs aligned with the overriding objective.

Are Incurred Costs Subject to Dispute?

It's crucial to understand that challenging incurred costs isn't feasible as they are reserved for evaluation during assessment. Unlike approved or agreed budgeted costs, incurred costs lack the same safeguarding provided by a Costs Management Order.

Nevertheless, the Court retains the authority to remark on the magnitude of incurred costs, documenting these observations in the Court Order. Such remarks may suggest that the costs are excessive or disproportionate, impacting any subsequent detailed assessment of the Bill of Costs.

Why Entrust DMD Costs with Your Costs Budget Negotiations?

At DMD Costs, our team of Costs Draftsmen boasts exceptional success rates in recovering costs on the Budgets they prepare and negotiate. Our offerings encompass:

• Each Precedent H and R is meticulously crafted with precision and scrutinized by a minimum of two senior staff members.

• Drawing on our familiarity with local courts, we strategically enhance future cost recovery across all phases.

• We adopt a collaborative stance during Cost Budget negotiations, providing clients with insights into the potential drawbacks of rejecting offers.

• Should the need arise, an advocate is at your disposal for any Case Management Conference (CCMC).

• We meticulously prepare and lodge all relevant court documentation, encompassing Precedent Rs, Composite Summaries, Phase Breakdowns, and any other requisite materials.

Some of Our Most Frequently Asked Questions

When is the Appropriate Time to Submit/Serve a Costs Budget Discussion Report (Precedent R)?

As per regulations, the Costs Budget Discussion Report must be submitted a week prior to any Costs Case Management Conference (CCMC).

Engaging a Costs Draftsman is essential to guarantee that your submissions are presented optimally before the CCMC.

What Occurs Following the Exchange of Precedent Rs?

Parties have the option to engage in ongoing negotiations over Cost Budgets to achieve consensus without court interference. However, it's important to note that Cost Budget Discussion Reports should not be settled simply to avoid a CCMC. There are no cost repercussions for failing to surpass an offer at a subsequent CCMC, thus readiness to proceed to a CCMC is advised if the opposing party's offer is deemed unreasonable. Typically, a court-approved Budget yields better recovery compared to one agreed upon during negotiations.

Moreover, upon agreement or approval, the date of agreement or CCMC denotes the shift from incurred to anticipated costs in your ultimate Bill of Costs. Anticipated costs in the Bill generally enjoy greater protection compared to incurred costs.

Why Ensuring Accuracy in Your Precedent R (Budget Discussion Report) Matters

After Costs Budgets receive approval, the anticipated costs outlined within them afford particular protection to the party aiming to recover costs upon conclusion. The Court of Appeal's decision in Harrison v University Hospitals Coventry & Warwickshire NHS Trust established that any anticipated costs claimed upon conclusion are recoverable if they align with the approved Budget. This minimizes disputes during assessment and ensures each party has a predetermined level of costs for each phase of litigation.

Hence, it's essential to ensure that future cost provisions are sufficient and to avoid conceding too much ground during Precedent R and Costs Budget negotiations.

Although the CPR does not outline explicit sanctions for non-compliance, neglecting to file a Precedent R could lead to the opposing party's Costs Budget being presumed uncontested and granted in its entirety.

Our Approach to Achieving Your Desired Outcomes

Our leadership team consistently oversees the caliber of our work. We attain our objectives by prioritizing the excellence of our output rather than the volume produced monthly.