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Davies LJ: Can somebody please tell me why we are here today when CPR 3.18 makes it very clear that the court will not depart from the budget at a DA unless there is good reason to do so?

Appellant’s counsel: M’Lord the Rules do not say that costs budgeting brings an end to detailed assessment.

Davies LJ: Yes I know that but the point of costs budgeting is to reduce the scope of disputes at a DA which is why a good reason is required to go behind the budget.

Costs Lawyer sitting behind Appellant’s Counsel:
(Oh sh*t – he’s onto us)

Appellant’s counsel: But M’Lord it might help if I put it this way. There is nothing in the CPR which prevents a detailed assessment going ahead after a costs budget and on the standard basis this means that the costs have to be reasonable and proportionate.

Davies LJ: Yes but as you know under Paragraph 7.3 of PD 3E the court must consider whether budgeted costs fall within the range of reasonable and proportionate costs at the CMO stage and this is why a good reason must be shown at a DA hearing to move from that costs budget. The two limbs of a standard basis assessment have already been taken into account when the CMO is made. What am I missing here?

Respondent’s counsel: M’Lord if I could interject.

Davies LJ: No, sit down. I’m seriously wondering whether it was reasonable and proportionate for you to appear before the Court on this point.

Appellant’s counsel: M’ Lord, I am instructed that the Rules say that a standard basis assessment at the end of a case must be subject to reasonableness and proportionality.

Davies LJ: Can you please tell me what the point is of having a CMO if the future costs that are budgeted are then subjected to a line by line assessment?

Appellant’s counsel: M’Lord there is reference in my skeleton to..erm…something about the budget being an available fund. Please bear with me as I find it. The observation was made by a highly respectable Costs Judge and as soon as I’ve got it (the skeleton, not the observation) I will repeat it to you…