Chancery Guide Update: Preliminary Issue or Split Trial when PD51ZG1
The fifth update to the Chancery Guide saw a new section inserted in relation to the costs budgeting light pilot scheme on matters proceeding in the Business and Property Courts of England and Wales, Manchester or Leeds or Business and Property Court work in the County Court at Central London, Manchester or Leeds (PD51ZG1), where one or both parties consider that a preliminary issue or split trial may be appropriate. The insert confirms that the following paragraphs are applicable:
“6.10 Costs and time can sometimes be saved by identifying decisive issues, or potentially decisive issues, and ordering that they are tried first. A trial of a preliminary issue may also be appropriate where its determination, although not itself decisive of the whole case, may enable the parties to settle the remainder of the dispute or otherwise shorten the proceedings. An example would be a relatively short question of law which can be tried without significant delay (or much in the way of disclosure or witness evidence) but which would be determinative of one or more of the key issues in dispute.”
“6.11 Parties should actively consider at the earliest opportunity, and certainly in advance of the first CMC / CCMC, whether there are any issues which are suitable for determination as a preliminary issue, or which should be tried separately such as a split between liability and quantum. If possible, parties should indicate when filing DQs whether a preliminary issue or split trial is under consideration and provide a summary of the proposed approach in Section I of the DQ. Parties should give careful consideration to the approach to costs budgeting and disclosure where a preliminary issue or split trial is proposed or agreed.”
The full updated guide can be found here: The Business and Property Courts of England & Wales Chancery Guide 2022
Costs Budget Light Pilot Schemes
Part 7 multi-track matters issued on or after 6 April 2025, captured by the Costs Budgeting Light pilot schemes, may soon be listed for their first case management conference, so as a reminder, the relevant practice directions listed below are to be mandatorily followed:
Please feel free to get in touch with any queries relating to the schemes or for guidance on how to approach costs budgeting when these pilots apply.
“Over-lawyering” a key criticism in costs budgeting exercise
Case law relating to budgeting has piqued the interest of lawyers, in the recent round of budgeting the Pan Nox Emissions Litigation.
At the second costs management hearing in this group litigation (Tranche 3), the second period of general costs were budgeted separately. For Tranche 3, the Claimants’ budgets were reduced from £55.7m to £21m and the Defendants’ budgets from £75.8m to £48m. In respect of second general costs, the Claimants’ budgets were reduced from £19.8m to £1.4m and the Defendants’ budgets from £3.6m to £1.3m.
Mrs Justice Cockerill DBE and Senior Costs Judge Rowley opined that in respect of the Claimants’ budgets –
“the largest reductions stem from the layers of representation leading to, for example, claims for individual, non-lead firms to audit or replicate work already being done by the Lead firms.”
The full judgment can be read here:
Anna Lockyer is a Senior Associate in the Costs and Litigation Funding Department at Clarion Solicitors and can be contacted on 07826 822 821 or at anna.lockyer@clarionsolicitors.com.