header-logo header-logo

17 September 2020 / David Cooper
Issue: 7903 / Categories: Features , Costs , Procedure & practice , Profession
printer mail-detail

Budget departures & the indemnity principle

27620
Got a good reason or not? David Cooper advises not to overlook the indemnity principle

In brief

  • Advising clients: certifying a budget and making the client aware of costs estimates.
  • Reasonable and proportionate costs: setting figures.
  • Costs judges: appraisal and evaluation.

Solicitors are required to advise clients about the costs in a case on a continuing basis. In a budgeted case, not only is there is a practical requirement to certify the budget, a solicitor must be satisfied that the client is aware of the costs estimate and has agreed to be responsible for the costs up until the conclusion of the case up to the amount of the budget. This is to ensure that any budget or bill presented does not breach the indemnity principle. The budget and the bill will contain a certificate to this effect. This is particularly important when considering whether a paying party may be able to demonstrate good reason for the court to depart from a budget.

Where a cost management order has been made the court can depart from

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll