A change from £2m to £10m in the upper limit for cases caught by the new costs management rules is expected to come into force on 22 April 2014. This will affect cases in the Technology and Construction Court ("TCC"). The costs management rules require strict budgeting requirements. If parties fail to comply, then they not be able to recover their legal costs (apart from court fees) even if successful.
When the new costs management rules were introduced, claims in the TCC were only caught if they were for less than £2m. This limit has now been described as setting "too low a threshold for any general exclusion to costs management".
It is expected that from 22 April, any claim of under £10m in the TCC will have to comply with the costs management rules.
