What is a Precedent H?

Costs recovery in any multi-track case starts at the point of cost budgeting. The cost budget (also referred to as the Precedent H) determines at the outset of litigation what the recoverable costs for the receiving party will be. It also determines where parties should focus their time and efforts during the course of litigation.

Costs budget preparation is required in any multi-track case, unless the court orders otherwise. The front sheet of a budget is only required in cases where the value on the claim form does not exceed £50,000. If the claim is worth over £50,000, parties should file a budget 21 days before the first Case Management Conference (CMC).

The rules for costs budgeting can be found under Part 3 and Practice Direction 3D of the Civil Procedure Rules.

What is Involved in Costs Budgeting?

Cost Budgeting can be best described as a costs management process throughout litigation. The Precedent H must be prepared by parties and be verified with a statement of truth, considering all issues in the case.

When first preparing the Costs Budget, the party must consider who will be working on the case, their hourly rates, forecast the future experts and witness required, and build contingencies. Much of the information required can be found in the Directions Questionnaire and proposed directions, and your Costs Budget should reflect the directions and length of Trial you are seeking.

Upon filing a costs budget, each party will get the chance to raise any disputes through the exchange of Precedent R (Costs Budget Discussion Reports). If Budgets cannot be agreed, you will need to proceed to a Costs and Case Management Hearing (CCMC) to get your Precedent H approved.

It is important to note that if you fail to submit a budget or submit it after the deadline, the Court may impose sanctions and you may only be able to recover your Court fees. If such a situation arises, you should urgently apply for relief from sanctions as soon as you become aware of any default or if another party raises an issue.

Incurred and Budgeted Costs

To allow the court to manage the costs of the proceedings, each party to a claim must file and serve a costs budget using the prescribed form, known as Precedent H.

This form records the costs incurred up to the Costs and Case Management Conference, including pre-action costs, costs related to statements of case and issuing proceedings.

It also estimates the total costs likely to be incurred for the remaining phases of the proceedings through to trial.

These phases include disclosure, witness statements, expert reports, Pre-Trial Review, trial preparation, alternative dispute resolution, and contingencies for anticipated costs that do not fall within any other phase of the Precedent H Costs Budget and are more likely than not to be incurred.

Why Instruct ARC Costs to Prepare Your Precedent H?

At ARC Costs, our Costs Draftsman pride themselves on their average recovery of 81% of the value of the Costs Budgets drafted. As an experienced team with a dedicated Cost Budget Manager, we handle the full Cost Budget drafting and negotiation process, and ensure:

• Every Precedent H is drafted with a high degree of accuracy and is vetted by at least two senior members of staff;
• Our knowledge of local Courts is utilized to benefit how best to go about recovering the maximum amount of future costs in any phase;
• That an amicable approach is taken to Cost Budget negotiations, and that the client is advised on every offer received as to the potential risks of rejecting any offer;
• That an advocate is made available for any Costs and Case Management Conference (CCMC) if required;
• That all accompanying Court documentation is prepared and filed, including Precedent Rs, Composite Summaries, Breakdown of Phases and any other items required.

We can also assist through the process of detailed assessment through the preparation of your bill of costs, points of disputes, replies, and our costs lawyers can provide representation at detailed assessment hearings, if required.

If you would like to find out how a member of our team can help you with your Precedent H, please do not hesitate to get in touch with us today using the contact form at the top of the page.