Failure to file a costs budget on time (CPR 3.13 and 3.14)
Dunmore Developments Ltd is the claimant in a Part 7 multi-track claim for £400,000 damages for breach of a construction contract. The claim, issued in the County Court at Nottingham in May 2026 and proceeding there, is not proceeding as Business and Property work and is not subject to any costs budgeting pilot scheme. The first costs and case management conference is listed for 15 July 2026. No order has been made dispensing with costs budgets or changing the time for filing them. Dunmore is legally represented, but its solicitors overlooked the deadline and did not file or exchange Dunmore's costs budget at least 21 days before the conference.
Unless the court otherwise orders, what is the consequence for Dunmore?
Choose one answer to see the reasoning.
Worked answer
Correct answer A: Dunmore will be treated as having filed a budget comprising only the applicable court fees.
THE RULE TO REMEMBER
Unless the court orders otherwise, a party that fails to file a required costs budget is treated as having filed a budget comprising only the applicable court fees (CPR 3.14).
Failure to file a costs budget on time (CPR 3.13 and 3.14)
Costs management under Section II of Part 3 applies to Part 7 multi-track claims, subject to exceptions such as claims of £10 million or more (CPR 3.12). Dunmore's £400,000 claim is within the scheme. By CPR 3.13(1), unless the court otherwise orders, all parties except litigants in person must file and exchange budgets. Where the stated value of the claim is less than £50,000 this is done with the directions questionnaire; in any other case it must be done not later than 21 days before the first case management conference. Dunmore missed that deadline. CPR 3.14 provides that, unless the court otherwise orders, any party which fails to file a budget despite being required to do so will be treated as having filed a budget comprising only the applicable court fees. Dunmore's only route out is to apply for relief from sanctions under CPR 3.9. Different rules apply to claims subject to the PD 51ZG1 and PD 51ZG2 simplified costs budgeting pilots, which disapply rules 3.13 and 3.14.
Why B is wrong: For a claim of £50,000 or more the budget must be filed at least 21 days before the first CCMC, and missing the deadline triggers CPR 3.14.
Why C is wrong: Strike-out is not the CPR 3.14 sanction; the party is limited to a budget of court fees.
Why D is wrong: No automatic 50% reduction exists; the sanction is a budget limited to court fees.
Why E is wrong: Below £50,000 the budget is filed with the directions questionnaire; larger multi-track claims also require budgets, filed 21 days before the first CCMC.
A little more practice done.
Related questions
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Which of the following orders may the court make because of Brightwater's non-compliance?
Claimant fails to beat a defendant's Part 36 offer: costs consequences (CPR 36.17(1)(a) and (3))
Which of the following best describes the order the court must make, unless it considers it unjust to do so?
Court's power to order ADR and costs consequences of refusing to engage (CPR 3.1(2)(o), 44.2(5)(e))
Which of the following best describes the position?
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