1. LSLA & LCLCBA Seminar Wednesday, 6 th March 2015 How Best to Prepare Your Budget / Form H Mitesh Modha, Senior Associate Kain Knight Group 1  The Kain Knight Group

2. Deadlines!  Directions Questionnaire  All documents to be returned usually within 28 days of DQ – date specified on Directions Notice  Otherwise, no later than 7 days before the CMC  7 clear days  Automatic sanction of court fees only  CPR 3.8(4)  28 day extension can be agreed  Providing no hearing date at risk  The Kain Knight Group 2

3. Preparation, preparation, preparation!  “the parties were well aware that this was a case for which budgeting would be required from the start…the mere fact that a date is set for CMC is not supposed to be the starting gun for proper consideration of budgeting” – Mitchell v NGN, Master McCloud  Line up Counsel / Experts / Costs Draftsman  Lead times for fee quotes  Discuss the litigation path  Who will “share the pain” of reductions???  The Kain Knight Group 3

4. Preparation, preparation, preparation!  Incurred and estimated costs must both be phased  E.g. pre-action witness statement/proofs must not be “dumped” in pre-action  Keep notes of where various time entries have been allocated – essential to costs recovery – CPR 3.18  Try to narrow/agree procedural issues with opponent:  Disclosure – extent / key words / date ranges  Number of experts / witnesses  Trial length  The Kain Knight Group 4

5. Preparation, preparation, preparation!  MoJ Guidance:  SoC amendments = Contingency not Issue/Pleadings  Part 18 Requests = Issue/Pleadings  CMC = only the first CMC  Witness statements = Yours and considering opponents  Expert reports = initial/joint statements, questions, supplementary reports  Copying bundles = not fee earner work in CMC/PTR/Trial  Counsel’s brief fee & refreshers = Trial phase, not split between Trial and Trial Prep  Trial – remember closing submissions/draft judgment  Mediation = Contingency not ADR/Settlement  The Kain Knight Group 5

6. Preparation, preparation, preparation!  Contingencies  Reasonably anticipated task not falling in another phase  Don’t be vague – not a general pot of money  Not expected to have a crystal ball  See Yeo v Times Newspapers Ltd [2015] EWHC 209 (QB) – “foreseen as more likely than not to be required”  PD 3E, para 7.9 – costs of interim apps not reasonably included in the approved costs budget, treated as additional to approved budget  But see Simpson v MGN Ltd & Anor [2015] EWHC 126 (QB)  The Kain Knight Group 6

7. Preparation, preparation, preparation!  Assumptions  Justify the incurred costs and estimated costs  Define the litigation path you have predicted  Outline what is excluded as well as included but do not “over caveat”  Mention brief fee tranches & expert cancellation fees  Not intended to be War & Peace on budgeting  CIP v Galliford Try [2015] EWHC 481 (TCC) – Coulson J  “six closely typed pages and no less than 65 separate assumptions”  “so widespread in nature and effect, that they alone render the Claimant’s budget wholly uncertain and therefore unreliable”  The Kain Knight Group 7