A revolution in litigation practice: details of the costs management rules taking effect in April 2013

Lord Neuberger MR explained how the proportionality test will be changed to address concerns voiced by Jackson LJ, emphasising the need for a consistent approach by judges.

Ramsey J outlined the new regime for costs management by the courts. Note that the regime will apply generally to all multi-track cases commenced on or after 1 April 2013 in a county court, the Chancery or Queen's Bench Division (except the Admiralty and Commercial Courts) unless the court otherwise orders, and to any other proceedings where the courts orders. All parties (except litigants in person) will be required to exchange and file costs budgets in the form of a new Precedent H.

Tony Guise (Chairman of the Commercial Litigation Association) commented on the new regime. Among his concerns are the fact that the rules provide an "opt out" for judges, who can decide not to make costs management orders, and the fact that Commercial Court cases are excluded from the regime.

Michael Bacon, a legal costs consultant, considered the impact of these changes and the introduction of ABSs, noting that we are on the edge of a revolution in litigation practice.