C1PART 3THE COURT'S CASE F1AND COSTS MANAGEMENT POWERS

Annotations:
Amendments (Textual)
F1

Words in Pt. 3 heading inserted (1.4.2013) by The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 5(a) (with rule 22)

Modifications etc. (not altering text)
C1

Pt. 3 applied (with modifications) (1.10.2007) by The Court of Protection Rules 2007 (S.I. 2007/1744), rules 1, 184(a)

F2SECTION IIICosts Capping

Annotations:
Amendments (Textual)

Costs capping orders – General3.19

F31

For the purposes of this Section—

a

‘costs capping order’ means an order limiting the amount of future costs (including disbursements) which a party may recover pursuant to an order for costs subsequently made; and

b

‘future costs’ means costs incurred in respect of work done after the date of the costs capping order but excluding the amount of any additional liability.

2

This Section does not apply to judicial review costs capping orders under Part 4 of the Criminal Justice and Courts Act 2015 or to protective costs orders.

(Rules 46.16 to 46.19 make provision for judicial review costs capping orders under Part 4 of the Criminal Justice and Courts Act 2015.)

F43

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4

A costs capping order may be in respect of –

a

the whole litigation; or

b

any issues which are ordered to be tried separately.

5

The court may at any stage of proceedings make a costs capping order against all or any of the parties, if—

a

it is in the interests of justice to do so;

b

there is a substantial risk that without such an order costs will be disproportionately incurred; and

c

it is not satisfied that the risk in subparagraph (b) can be adequately controlled by–

i

case management directions or orders made under this Part; and

ii

detailed assessment of costs.

6

In considering whether to exercise its discretion under this rule, the court will consider all the circumstances of the case, including—

a

whether there is a substantial imbalance between the financial position of the parties;

b

whether the costs of determining the amount of the cap are likely to be proportionate to the overall costs of the litigation;

c

the stage which the proceedings have reached; and

d

the costs which have been incurred to date and the future costs.

7

A costs capping order, once made, will limit the costs recoverable by the party subject to the order unless a party successfully applies to vary the order. No such variation will be made unless—

a

there has been a material and substantial change of circumstances since the date when the order was made; or

b

there is some other compelling reason why a variation should be made.