There can be uncertainty around the content and wording to include in draft costs management orders, a point reinforced by Senior Master Cook in Baroness Lawrence & Ors v Associated Newspapers Limited [2025] EWHC 3207 (KB) when he ordered a re-draft of an incorrectly drawn costs management order, observing “parties seldom draft proper or effective costs management orders”, despite his King’s Bench Division Guide note on Cost Management Hearings, setting this out at Paragraph 13 of Annex 8:
Essentially, confirmation of any agreed/not agreed incurred costs, the amounts by which the budgeted costs of each party have been agreed or approved (as required by CPR 3.15(2)) and any comments made by the court at the hearing with regards to the predications the assumptions are based on, should be clearly recorded on the Order. These statements may include the extent of disclosure; the number of days any experts will attend trial; and whether a mediation or some other settlement meeting is anticipated.
There are occasions when a table can be included in the costs management order that sets out the budgets’ figures, distinguishing those agreed from those approved.
If directed by the court, costs set out in this tabular form, may replace the requirement for front sheet costs budgets.
There are also certain judges who prefer an additional provision in a costs management order, referring to how departures from budgets would only be allowed with good reason, as per CPR 3.18(b). This may be provided for as follows:
“This costs management order is without prejudice to any issue which a party wishes to take on detailed assessment save that the court will not depart from the receiving party’s last approved or agreed budget unless there is good reason to do so.”
In recent years, templates have remained mostly unchanged, but the courts seem increasingly focused on ensuring costs management orders are properly prepared. Having a correct draft ready ahead of a costs management hearing, can be crucial to obtaining the desired outcome.
Anna Lockyer is a Senior Associate in the Costs and Litigation Funding Department at Clarion Solicitors. You can contact the team at civilandcommercialcosts@clarionsolicitors.com.