We already have conflicting dicta over the interaction between costs budgets and indemnity costs.
Elvanite Full Circle Limited v AMEC Earth & Environmental (UK) Limited
http://www.bailii.org/ew/cases/EWHC/TCC/2013/1643.htm
14 June 2013
Paragraph 28: "Prima facie, whether under PD 51G paragraph 8, or CPR 3.18, the costs management order (with its approval of the costs budget) is expressed to be relevant only to an assessment of costs on a standard basis. However, as a matter of logical analysis, it seems to me that the costs management order should also be the starting point of an assessment of costs on an indemnity basis, even if the 'good reasons' to depart from it are likely to be more numerous and extensive if the indemnity basis is applied."
(1) SLICK SEATING SYSTEMS
(2) GL EVENTS SA Claimants/Respondents
v
(1) LEA MARK ADAMS
(2) LEAMARK LIMITED
(3) LA STRUCTURES
(4) JOHN JONES
http://www.bailii.org/ew/cases/EWHC/Mer ... 13/B8.html
13th May 2013
Paragraph 11: "… indemnity costs are applicable. This means that the costs budgeting, even if the claimants had exceeded their budget would not have come into play as far as this is concerned because it would be upon the defendant to show that the costs they had incurred, whether within or above the budget were unreasonable."
Tim
http://www.twitter.com/TPcosts