Fixed Costs – Civil Procedure Rules Amendments

Fixed Costs – Civil Procedure Rules Amendments

The forthcoming amendments to the Civil Procedure Rules, which will be effective from 6 April 2017, include some significant amendments to the recovery of fixed costs in personal injury cases.
 
The particular rule in question is CPR 45.29, which sets out the amount of fixed costs that are recoverable in personal injury cases which have left the MOJ Portal. Although not expressly clear, the rules currently state that fixed costs will apply to cases with a value of less than £25,000. However, if the claim is valued at more than £25,000 then a Claimant is able to escape the fixed costs regime and recover costs on the standard basis.
 
However, following the Court of Appeal’s recent decision in Qader & Others v Esure Ltd & Khan v McGee [2016] EWCA Civ 1109, 16 November 2016, the Civil Procedure Rules Committee has sought to provide clarification as to when fixed costs do and do not apply.
 
From 6 April 2017, rule 45.29 will now read “subject to rules 45.29F, 45.29G, 45.29H and 45.29J,
 
and for as long as the case is not allocated to the multi-track,
 
if, in a claim started under the RTA Protocol, the Claim Notification Form is submitted on or after 31st July 2013, the only costs allowed are…”
 
 
Furthermore, all references to the upper limit of £25,000 as set out in Tables 6B and 6C are to be removed.
 
The practical effect of this is that if you have a claim that exceeds £25,000 in value, but you reach a settlement before the case is allocated, then you will not be able to recover anything other than fixed costs.
 
This obviously raises a number of issues, not least that this will surely discourage early settlement as Claimants are likely to hold off negotiating until they secure an allocation to the multi-track. However, on the flip side, we may see Defendant’s making early, and realistic, Part 36 offers in order to try and avoid such a scenario.
 

bSquared costs law are experienced in dealing with all aspects of costs disputes arising out of civil litigation. Contact us to request your free litigation costs recovery guide.
 
To discuss how we can support your firm or for free initial advice on any cost law matters, feel free to contact us on:
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