Ian Gascoigne & Hena Ninan ask whether costs budgeting will make a difference to large commercial disputes
Lord Justice Jackson’s terms of reference in his review into the basis of costs of civil litigation featured (i) promoting access to justice at (ii) proportionate cost. One year in from implementation these two factors are the twin aspects against which we should judge the extension of costs budgeting requirements.
From 22 April 2014, costs budgeting became a requirement for all claims valued at £10m or less at issue. Cases now brought into the net include commercial disputes and property claims which were previously caught by the exemptions.
Will the extension of costs budgeting to the commercial sector of civil justice deliver against the stated aims? Based on the operation of the costs budgeting to date, we question whether it will have any real impact.
In paras 6.10 and 6.11 of the Costs Review Jackson LJ wrote: “Costs management is an adjunct to case management,
