In Rahman v Hassan & Ors [2024] EWHC 2038 (Ch), the claimant sought a revision of the costs budget post-trial, arguing that five developments during the litigation warranted an increase in the original costs. HHJ Paul Matthews rejected this application, ruling that none of the claimed developments were “significant” enough to justify a budget revision under CPR rule 3.15A.

The claimant’s application cited factors such as a road accident causing trial delays, amendments to particulars of the claim, and additional costs incurred due to the defendant’s submissions and the circulation of the draft judgment. The defendants opposed the application, arguing that no formal application or supporting evidence had been submitted, and that the issues raised were foreseeable or common in litigation. They also pointed out that the claimant’s representation at trial had been different from that budgeted, which should not result in increased costs.

The judge acknowledged that while the developments mentioned by the claimant may have impacted costs, they were not “significant” developments under the CPR. He emphasised that not every change in a case justifies a budget revision, as this would result in numerous unnecessary pre-trial applications. The court also noted that any extra costs could be addressed in the final costs assessment, rather than through a budget revision.

Ultimately, the application was dismissed, as the developments were considered within the scope of what the parties should have anticipated when the original budget was set. Additionally, the order for indemnity costs due to the defendant’s failure to beat a Part 36 offer made the relevance of the budget revision minimal, as indemnity costs are not constrained by the costs budget.

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