Citation: [2023] Costs LR 1025
The court considered the defendant’s application for relief from sanctions, where the defendant had served a costs budget in time that was materially incomplete, and had later served a “replacement” budget which was complete, but served five days late. The defendant’s original budget had not complied with the requirements in CPR 3.13(5) as it had been unsigned and not verified by a statement of truth. The original budget also had not included any incurred or estimated costs in respect of the Issue or CMC Phases, and there had been two different front sheets, one totalling £338,084.00 and another totalling £144,812.00. The “complete” budget served by the defendant totalled £891,897.
Held: Applying the Denton test to the facts of the case it was appropriate to grant relief from sanctions. The breach was neither serious nor significant. The time lost between service of the first and second budget was two clear business days, and there were 16 days between service of the second budget and the CCMC, which allowed the parties time to serve budget discussion reports in good time before the hearing. There was clearly no good reason for the default. However, granting relief would not prevent the litigation being conducted efficiently and at proportionate cost. The breach had not disrupted the proceedings, and the costs budgeting exercise undertaken at the CCMC was specifically directed to proportionality having regard to the value of the claim.
Callum Monro Morrison represented the successful claimant.
