What Happens To Budgeted Costs If Phases Are Not Complete?

A Regional Costs Judge has added to the growing body of conflicting decisions concerning the application of 'good reason' when cases settle before trial. It is settled law following Harrison [2017] EWCA Civ 792 that in the absence of 'good reason' budgeted sums will not be reduced on detailed assessment. However, it is not clear what happens if a case settles before phases are complete. If assumptions underpinning allowances have not materialised, paying parties will argue that there is good reason to depart from budgeted sums even if the amount claimed is less than an allowance. For example, if £10,000 is allowed in an ADR phase to accommodate a round table meeting but the case settles before a round table meeting takes place, it must surely be within the discretion of the court to assess a sum claimed of say £8,000 when it was obvious that the vast majority of the allowance was to pay for an event which has not taken place.