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The cat is out of the bag. Judges think costs budgeting is a waste of time. We always suspected it, but now we know it.
Master Davison of the Queen’s Bench Division was ruling on whether or not to allow costs budgeting in a case on the asbestos list. He refused to do so, on the basis that there is a ‘firm convention’ that no asbestos list cases are subject to budgeting. And he added this bombshell: ‘QB masters, Chancery masters and costs judges do not necessarily share this defendant’s expressed confidence that costs budgeting controls costs better, or more effectively, than detailed assessment.’
The relevant Part 36 rules
Where a Part 36 offer is accepted after the relevant period has expired, the court will determine costs unless the parties have reached an agreement (rule
36.13(4)(b)). When C’s offer is accepted late, the presumption is that C will be awarded their costs up to the date on which the offer was accepted (rule 36.13(5)). The court is required to apply the presumption in rule 36.13(5) ‘unless it considers it unjust to do so’, in which case it can make a different costs order. The defendant in Pallett attempted to limit their costs liability by accepting the claimant’s offer after the relevant period.
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