PLESAE NOTE THIS PD COMES INTO FORCE 6 APRIL2025.

1.This Practice Direction establishes a pilot scheme to test new approaches to costs budgeting in certain claims and applies to relevant claims issued on or after 6 April 2025 and before 6 April 2028.

2. The provisions of Section II of Part 3 (costs management) and Practice Direction 3D shall apply, save as modified by this Practice Direction. Rules 3.13 and 3.14 shall not apply.

3. In this Practice Direction—

(a) “relevant claim” means a Part 7 multi track-claim—

(i) to which Section II of Part 3 and Practice Direction 3D applies;

(ii) which has a value of less than £1 million;

(iii) to which neither Practice Direction 51ZG1 nor rule 44.13 applies;

(iv) which is proceeding in the County Court at Central London or at the Leeds or Bristol District Registries;

(b) “simplified costs budget” means Precedent Z annexed to this Practice Direction;

(c) “simplified budget discussion” report means Precedent RZ annexed to this Practice Direction;

(d) “the form for variation of a simplified costs budget” means Precedent TZ annexed to this Practice Direction.

4. Unless the court orders otherwise all parties except litigants in person shall file and serve a simplified costs budget by no later than 21 days before the first case management conference.

5. Where that party has been served with a simplified costs budget each represented party must, and each litigant in person may, file and serve a simplified budget discussion report no later than 7 days before the first case management conference.

6. At the first case management conference the court will give case management directions and unless satisfied in accordance with rule 3.15(2), that a costs management order is not required, make a costs management order by reference to a simplified costs budget.

7. Where the court makes a costs management order using a simplified costs budget the provisions of rule 3.15 (Costs Management Orders), rule 3.15A (Revision and Variation of budgets), rule 3.16 (Costs Management Conferences), rule 3.17 (Having regard to budgets), and rule 3.18 (Assessing costs on the standard basis), shall apply with necessary modification such that references to a “budget” in those provisions shall include a simplified costs budget and references to Precedent T shall include Precedent TZ.

8. Where the court does not make a costs management order—

(a) the provisions of paragraphs 3.2 to 3.7 of Practice Direction 44 shall apply as if reference in those paragraphs to a budget is reference to the simplified costs budget filed in accordance with paragraph 4 and any updated simplified costs budget;

(b) unless the court orders otherwise, each party shall file and serve an updated simplified costs budget no later than 28 days before—

(i) the start of the trial;

(ii) the start of any trial window; or

(iii) 7 days before any pre-trial review, whichever is the earlier; and

(c) the court may order a party to file an updated simplified costs budget at any stage of the proceedings.

9. If a party fails to comply with its obligations under this Practice Direction including a failure to file a simplified costs budget the court may impose sanctions which may include limiting the recovery of the costs to be incurred to the applicable court fees.

Precedent Cost Forms