UPDATED:

pursuant to decisions of the Civil Procedure Rule Committee on 09-11-18

followed by the inclusion of a new paragraph 10 at its meeting on 05-04-19
to support the changes within the 109th PD Update which came into effect on 01-10-19

GUIDANCE NOTES ON PRECEDENT H

1. Where the monetary value of the case is less than £50,000 [or the costs claimed are less than
£25,000] the parties must only use the first page of Precedent H.

2. Save in exceptional circumstances, the parties are not expected to lodge any documents other
than Precedent H and the budget discussion report. Both are available in Excel format on the
MOJ website with PD 3E. If the Excel format precedent on the MOJ website is used, the
calculation on page one will calculate the totals automatically and the phase totals are linked
to this page also.

3. This is the form on which you should set out your budget of budgeted costs in accordance with
CPR Part 3 and Practice Direction 3E. In deciding the reasonable and proportionate costs of
each phase of the budget the court will have regard to the factors set out at Civil Procedure
Rules 44.3(5) and 44.4(3) including a consideration of where and the circumstances in which
the work was done as opposed to where the case is heard.

4. This table identifies where within the budget form the various items of work, in so far as they
are required by the circumstances of your case, should be included. The time estimated may
have to be justified on the budget hearing along with the grade of fee earner doing the work.

5. Allowance must be made in each phase for advising the client, taking instructions and
corresponding with the other party/parties and the court in respect of matters falling within
that phase.

6. The ‘contingent cost’ sections of this form should be used for anticipated costs which do not
fall within the main categories set out in this form. Examples might be the trial of preliminary
issues, applications to amend, applications for disclosure against third parties or (in libel cases)
applications re meaning. Only include costs which are more likely than not to be incurred.
Costs which are not anticipated but which become necessary later are dealt with in paragraph
7.6 of PD3E.

7. Any party may apply to the court if it considers that another party is behaving oppressively in
seeking to cause the applicant to spend money disproportionately on costs and the court will
grant such relief as may be appropriate.

8. Assumptions:

a. The assumptions that are reflected in this guidance document are not to be repeated.
Include only those assumptions that significantly impact on the level of costs claimed
such as the duration of the proceedings, the number of experts and witnesses or the
number of interlocutory applications envisaged. Brief details only are required in the
box beneath each phase. Additional documents are not encouraged and, where they
are disregarded by the court, the cost of preparation may be disallowed, and
additional documents should be included only where necessary.

1
 UPDATED:
pursuant to decisions of the Civil Procedure Rule Committee on 09-11-18
followed by the inclusion of a new paragraph 10 at its meeting on 05-04-19
to support the changes within the 109th PD Update which came into effect on 01-10-19

b. Written assumptions are not normally required by the Court in cases where the
parties are only required to lodge the first page.

9. Budget preparation: the time spent in preparing the budget and associated material must not
be claimed in the draft budget under any phase. The permitted figure will be inserted once
the final budget figure has been approved by the court.

10. Definition of budgeted and incurred costs: see CPR 3.15 and PD3E para 7.4.
a. Incurred costs are all costs incurred up to and including the date of the first costs
management order, unless otherwise ordered.
b. Budgeted costs are all costs to be incurred after the date of the first costs management
order.

Phase Includes Does NOT include

Pre-action • Pre-Action Protocol correspondence • Any work already incurred
• Investigating the merits of the claim and in relation to any other
advising client phase of the budget
• Settlement discussions, advising on
settlement and Part 36 offers
• All other steps taken and advice given pre
action
Issue/statements • Preparation of Claim Form
of case • Issue and service of proceedings
• Preparation of Particulars of Claim,
Defence, Reply, including taking
instructions, instructing counsel and any
necessary investigation
• Considering opposing statements of case
and advising client
• Part 18 requests (request and answer)
• Any conferences with counsel primarily
relating to statements of case
• Updating schedules and counter
schedules of loss
• Amendments to statements of case

CMC • Completion of DQs • Preparation of costs

• Arranging a CMC budget for first CMC (this
• Reviewing opponent’s budget will be inserted in the
• Correspondence with opponent to agree approved budget)
directions and budgets, where possible
• Preparation for, and attendance at, the
CMC

2
 UPDATED:
pursuant to decisions of the Civil Procedure Rule Committee on 09-11-18
followed by the inclusion of a new paragraph 10 at its meeting on 05-04-19
to support the changes within the 109th PD Update which came into effect on 01-10-19

• Finalising the order

• Any further CMC that is built into the
proposed directions order

Disclosure • Obtaining documents from client and • Applications for specific

advising on disclosure obligations disclosure
• Reviewing documents for disclosure, • Applications and requests
preparing disclosure report or for third party disclosure
questionnaire response and list
• Inspection
• Reviewing opponent’s list and
documents, undertaking any
appropriate investigations
• Correspondence between parties about
the scope of disclosure and queries
arising
• Consulting counsel, so far as
appropriate, in relation to disclosure

Witness • Identifying witnesses • Arranging for witnesses to

Statements • Obtaining statements attend trial (include in
• Preparing witness summaries trial preparation)
Consulting counsel, so far as
appropriate, about witness
• statements
• Reviewing opponent’s statements and
undertaking any appropriate
• investigations
• Applications for witness summaries

Expert Reports • Identifying and engaging suitable • Obtaining permission to

expert(s) adduce expert evidence
• Reviewing draft and approving (include in CMC or a
• report(s) separate application)
• Dealing with follow-up questions of Arranging for experts to
experts attend trial (include in
• Considering opposing experts’ reports trial preparation)
Any conferences with counsel primarily
relating to expert evidence Meetings of
experts (preparing agenda etc.)

PTR • Bundle • Assembling and/or

• Preparation of updated costs budgets copying the bundle (this is
and reviewing opponent’s budget not fee earners’ work).
Preparing and agreeing chronology,
case summary and dramatis personae

3
 UPDATED:
pursuant to decisions of the Civil Procedure Rule Committee on 09-11-18
followed by the inclusion of a new paragraph 10 at its meeting on 05-04-19
to support the changes within the 109th PD Update which came into effect on 01-10-19

(if ordered and not already prepared

earlier in case)
• Completing and filing pre-trial checklists
• Correspondence with opponent to
agree directions and costs budgets, if
possible
• Preparation for and attendance at the
PTR
Trial • Trial bundles • Assembling and/or
Preparation • Witness summonses, and arranging copying the trial bundle
• for witnesses to attend trial Any (this is not fee earners’
final factual investigations work)
Supplemental disclosure and • Counsel’s refreshers
statements(if required)
• Counsel’s brief fee
• Agreeing brief fee
• Any pre-trial conferences and advice
from counsel
• Pre-trial liaison with witnesses
Trial • Solicitors’ attendance at trial • Preparation for trial
• All conferences and other activity • Counsel’s brief fee for
outside court hours during the trial trial (include in trial
Attendance on witnesses during the preparation)
trial
• Counsel’s trial refreshers
• Dealing with draft judgment and
• related applications

ADR/Settlement • Any conferences and advice from

counsel in relation to settlement
• Work directed to settlement
negotiations and meetings between the
parties and any other ADR (including
mediation), to include Part 36 and other
offers and advising the client
• Approval of settlement if needed
• Drafting settlement agreement or
• Tomlin order
• Advice to the client on settlement
(excluding advice included in the pre
action phase)