There will be amendments to CPR following the decision in SARPD
The Civil Procedure Rule Committee have agreed amendments are needed to the CPR following the decision in SARPD Oil International v Addax Energy  EWCA Civ 120 when it was held that a failure to challenge incurred costs at the Costs & Case Management Conference, when the opposing party’s budget had been agreed, precluded a future challenge to incurred costs at detailed assessment.
The court’s costs management powers are limited to estimated costs only, however the decision in SARPD highlighted the difficulty created when a party agrees an opponent’s budget that is made up of incurred costs as well as estimated costs.
The CPRC have agreed changes to rules 3.13, 3.18, 44.1 and PD 3E are needed and that no consultation is required because the purpose of the amendments is to restore the status quo to clarify that:
- The court’s budgeting powers will relate to estimated costs only
- The court can properly apply CPR 44.4 on detailed assessment
- The court can continue to comment on incurred costs at the budgeting stage
- The parties can continue to agree costs budgets that include incurred costs that are not agreed
Attain are experts in helping firms deal with the new cost management regime. Call us on 01664 565325 or visit http://www.attaincosts.co.uk/