CCMC Hearing: Costs and Case Management
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In civil litigation in England and Wales, the Costs and Case Management Conference (CCMC) is important for ensuring that cases are handled efficiently and costs are controlled. The introduction of case management reforms, particularly through the Civil Procedure Rules (CPR), aimed to curb rising litigation costs and improve access to justice.
ARC Costs offer expert advocacy services for Costs and Case Management hearings.
Overview of the CCMC Hearing
The Costs and Case Management Conference is a procedural hearing that takes place in civil litigation to deal with issues relating to future conduct of the and the costs involved. The primary aim is to ensure that both the timetable for the case and the costs incurred are proportionate to the complexity and value of the matter in dispute.
The CCMC reflects the overriding objective of the CPR, which seeks to resolve disputes justly, fairly, and proportionately in terms of time, complexity, and cost.
During the CCMC, the court addresses two main areas:
Case management:
The court reviews the timetable for the case and sets deadlines for the exchange of evidence, the submission of expert reports, and other key litigation steps.
Cost management:
The court approves or revises the parties’ cost budgets, setting limits on the amount of legal costs that can be recovered by the winning party at the end of the trial.
Preliminary steps before a CCMC Hearing
Before a CCMC hearing takes place, parties are required to file a costs budget, also known as a Precedent H. CPR 3.13 provides that these budgets must be exchanged and filed by the parties at least 21 days before the first CCMC. In cases where the claim is valued under £50,000, this budget must be filed with the Directions Questionnaire. However, in high-value cases exceeding £50,000, the budget needs to be filed 21 days before the CCMC.
The costs budget provides a forecast of the costs each party expects to incur during the litigation process. It is crucial that these budgets are realistic, as the court will use them to control costs throughout the case. If a party fails to file a costs budget, CPR 3.14 dictates that they will be limited to recovering only the court fees, which can have serious financial implications for the losing party.
Parties may attempt to negotiate costs budgets prior to a CCMC hearing using budget discussion reports.
The claimant should prepare a case summary to assist the court at a CMC/CCMC. This summary should include:
- A brief chronology of the claim;
- The factual issues that are either agreed upon or remain in dispute; and
- The evidence required to resolve the disputed issues.
Case Management Directions
Typically, parties should aim to reach an agreement on case management directions for the next steps in the litigation process. Discussions about these directions generally cover the following key points:
- Whether the claim should be stayed for alternative dispute resolution;
- Disclosure of documents;
- Disclosure of electronic documents (if applicable);
- Inspection of disclosed documents;
- Exchange of witness statements;
- Expert evidence and the scope of admissions;
- Exchange of expert reports;
- Arranging a meeting between experts to identify the issues in dispute and potential outcomes (if applicable);
- Instructing experts to prepare a joint statement outlining areas of agreement and disagreement, along with a summary of the reasons for any disagreement;
- Whether another CCMC (or a Pre-Trial Review, a different type of procedural hearing) will be necessary to review the case and issue further directions;
- The suitability of proposed trial dates or trial windows for the parties; and
- The time estimates for the trial
While parties are encouraged to collaborate on case management directions, disagreements may arise. For instance, one party may wish to pursue settlement through mediation, while the other may prefer not to.
In cases of disagreement on directions, the legal representatives for each party will present their respective positions at the CCMC. Ultimately, however, the court will make the final decision on which case management directions to implement.
What happens at a CCMC Hearing?
At a CMC/CCMC hearing, the court has broad discretion to delve into the details of the case. Parties should be especially aware that the court can narrow the issues in dispute, grant summary judgment, or strike out parts of the claim or defence.
At the CCMC, the court reviews the filed budgets, with the parties expected to justify their estimated costs. The court will assess these costs for proportionality, ensuring that they are reasonable in relation to the value of the claim, the complexity of the issues, and the resources of the parties.
The judge has discretion to approve, revise, or refuse costs set out in the budget, and once approved, the budget becomes binding. This prevents parties from later inflating their legal costs beyond what has been deemed acceptable, thus ensuring more predictable cost exposure for all parties.
In addition to cost management, the court will issue case management directions to manage the case’s progress. This can include setting dates for key events such as disclosure of documents, witness statements, and expert evidence. The court will also allocate the case to one of the three tracks—small claims, fast track, or multi-track—depending on the complexity and value of the case.
Cost Management Orders (CMOs)
Following the review of the parties’ costs budgets in Multi Track type disputes, the court issues a Cost Management Order (CMO). This order sets out the budgeted costs approved by the court and is used for controlling costs throughout the litigation. Importantly, the CMO ensures that both parties are aware of the cost limits from the outset, preventing any surprises regarding recoverable costs at the end of the litigation process.
Although the CMO binds the parties to the agreed or approved budget, there is still some flexibility. If circumstances change significantly during the litigation, parties can apply to revise their costs budget.
Consequences of Non-Compliance
Failure to comply with the court’s directions or the requirements of the costs budgeting process can lead to serious consequences for parties. For instance, failing to submit a costs budget on time or filing an incomplete or non-compliant budget can lead to severe limitations on cost recovery. The default position is that a party who fails to file a costs budget on time will be limited to recovering only court fees, which could lead to significant financial losses.
Similarly, failure to adhere to the court’s case management directions can result in sanctions, such as adjournment of the hearing, dismissal of claims, or adverse costs orders.
How can ARC Costs Assist?
ARC Costs provide a professional cost drafting and advocacy service. We can assist by drafting a Precedent H Costs Budget, ensuring that all future costs are anticipated correctly, maximising your costs recovery. We can also assist in the preparation of a Precedent R, to correctly negotiate a Costs Budget. If your budget cannot be agreed, we can provide advocacy services at Costs and Case Management (CCMC) hearing.
We can be contacted by email at info@arccosts.co.uk, or by telephone on 01204 397302. For more information on legal costs, please find out more about our speciality areas of expertise and our services on our legal costs page.
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