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10 November 2017 / John O'Hare
Issue: 7769 / Categories: Features , Procedure & practice , Costs , Budgeting
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The Jackson test of proportionality

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John O’Hare on how to reduce costs which are reasonable but disproportionate

In cases commenced after 1 April 2013, the old Lownds test of proportionality in costs has been largely replaced by a new test, the Jackson test, set out in CPR 44.3(5). This states that costs incurred are proportionate if they bear a ‘reasonable relationship’ to:

  • the sums in issue in the proceedings;
  • the value of any non-monetary relief in issue in the proceedings;
  • the complexity of the litigation;
  • any additional work generated by the conduct of the paying party: and
  • any wider factors involved in the proceedings, such as reputation or public importance (emphases added).

Rule 44.3(2) states that on a standard basis assessment: ‘Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred …’. This new test reverses the Lownds test in two ways.

  • First, necessary costs are no longer deemed to be proportionate because proportionality
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