SQE 1 – Dispute Resolution Commencing Proceedings Practice Test

Cost budgeting is especially relevant for which track?

Multi-track. Small claims. Fast track. Appeals.

Correct Answer:

Multi-track.

Explanation:

Cost budgeting is the process of forecasting and controlling the legal costs of a case so that expenses stay proportional to what is at issue and to what the court considers reasonable. It matters most in the multi-track because those cases are typically longer, more complex, and involve more steps (disclosure, expert evidence, longer trials). With that complexity comes higher and more unpredictable costs, so the courts require budgets to help manage expectations and keep costs in check. In contrast, the small claims track is designed to be quick and inexpensive and usually doesn’t involve the formal budgeting process, and appeals follow a different cost framework. So the track where cost budgeting is standardly and most relevant is the multi-track.

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