Today the 183rd Practice Direction Update was announced which introduces PD 51ZG3 (Pilot Scheme for Certain High Court QCOCS Cases). This is the final of a suite of three pilot Practice Directions to trial simplified cost budgeting in certain claims. This third pilot is pilot scheme which applies to claims issued on or after 6 April 2025 in High Court QOCS cases (where CPR 44.13) in the Manchester and Birmingham District Registries.
This pilot PD does not apply to County Court proceedings. The CPRC have chosen to remove any monetary limit to the pilot, therefore this will apply to High Court QCOCs claims with a pleaded value in excess of £10mil.
The pilot commenced on 6 April 2025 and will run for a period of three years. Its duration corresponds with both the Business and Property Courts Pilot and the sub-£1 million non-BPC/non-QOCS Pilot.
Under the PD, all represented parties are required to file a simplified costs budget 21 days before the first case management conference (paragraph 4 of the PD).
Defendant parties will be required to file and served a simplified budget discussion report no later than 14 days before the first case management conference.
Unless the Court otherwise orders, the requirement for a BDR 14 days before the CMC will not apply if any party gives notice to the Court any other party (no later than 21 days before the first CMC) that they intend to seek a direction for either, a) a split trial or preliminary issue trial; or b) that the litigation can only be conducted justly and at proportionate cost if the court manages costs using Precedent H.
Whilst Defendants will be required to file/serve a Precedent Z, the Court will not make a cost management order in respect of the Defendant’s costs unless satisfied that the litigation can only be conducted justly and at proportionate cost if such an order is made.
The usual sanctions of CPR 3.14 are dis-applied, rather para 11 of the PD pilot allows the Court to impose sanctions which may include limiting the recovery of costs to be incurred to applicable court fees for failure to comply with the obligations under the PD. Late filing and service of budget discussion reports could therefore see sanctions imposed.
Similar to PD 51ZG1 & PD 51ZG2, here if the Court does not make a cost management order, the provisions of PD 44 para 3.2-3.7 shall apply. In addition, unless the court otherwise orders, each party shall file and serve an updated simplified budget no later than 28 days before the start of trial, the start of any trial window or 7 day before any pre-trial review, whichever is the earlier.
The new forms Precedent Z, ZR and ZT are live and located here.
If you require any assistance with cost management under the pilots please get in touch.