From the 1 October 2023 the Fixed Recoverable Costs (FRC) regime will extended for claims up to £100,000 and the extension will take effect through changes to the Civil Procedure Rules (CPR).
This means that only a fixed amount of costs (as set out in the tables below) will apply to civil claims issued on or after 1 October 2023. If you are considering issuing a claim, you should be aware of the changes in respect of the recovery of legal costs.
| What are FRC?
FRC are set amounts that the winning party in civil litigation is entitled to recover from the losing party at difference stages of the litigation process, from pre-issue to trial.
| Changes to Fixed Recoverable Costs from 1 October 2023
Currently, the recoverability of costs is largely dependent upon the procedural ‘track’ to which a case is allocated. The tracks are as follows:
- the Small claims track (for claims worth less than £10,000);
- the Fast-track (for claims worth £10,000 to £25,000);
- a new Intermediate track (for claims worth between £25,000 and £100,000); and
- the Multi-track (for claims over £100,000).
If allocated to the fast track or new intermediate track, your claim will then be assigned to one of four different complexity bands
Fast track complexity:
Band 1: RTA accident related, non-personal injury claims and Defended debt claims.
Band 2: RTA related personal injury claims which are or should have been stated in the RTA protocol and Personal injury claims in relation to Package travel claims.
Band 3: RTA related PI claims where RTA protocol doesn’t apply, employers and public liability PI claims and other money claims.
Band 4: employer’s liability disease claims, property and building disputes, Professional negligence claims and any claim which would normally be allocated to the fast track.
Intermediate track complexity:
Band 1: Straightforward cases where there is only one issue and which can be dealt with at a one day trial.
Band 2: Any less complex claims where more than one issue is in dispute.
Band 3: Any more complex claims where more than one issue is in dispute but which is unsuitable for band 2.
Band 4: Claims which are more complex and so unsuitable for bands 1 to 3.
Where a party has behaved unreasonably, the Court has the power to order that the costs awarded be reduced/increased by an amount equivalent to 50% of the FRC which would otherwise be payable.
| New fixed costs regime – how we can support you?
The new rules are intended to make the costs regime fairer and more transparent.
FRC gives parties a much better idea of what costs they may recover if they win or lose their case, which in turn will inevitably inform decisions about whether to pursue or defend a claim.
FRC does not alter the amount that a solicitor can charge for the services it provides in pursuing or defending your claim.
If you are currently involved in a legal dispute and would like advice on a claim, please call our Dispute Resolution team on 0800 988 7756, we’re here to help.
TABLE 12 (RULE 45.44): FIXED COSTS – FAST-TRACK
|If Parties reach a settlement prior to the claimant issuing proceedings under Part 7|
|(1) Where damages are not more than £5,000||£NIL||The greater of £660 or £120+ 20% of damages||£1,100 + 17.5% of damages||In each case- £2,600+ an amount equivalent to 15% of the damages + £510 per extra defendant|
|(2) Where damages are more than £5,000 but not more than £10,000||£NIL||£1,300 plus 15% of the damages over £5,000||£2,200 plus 12.5% of damages over £5,000|
|(3) Where damages are more than £10,000||£580||£2,300 plus 10% of damages over £10,000||£3,000 plus 10% of damages over £10,000|
|If proceedings are issued under part 7, but the case settles or is discontinued before trial|
|(1) On or after the date that the Court issues the claim, but before the date that the claim is allocated||£2,100||£1,400 plus 20% of damages||£3,200 plus 20% of the damages||£3,000 plus 40% of the damages and £760 per extra defendant|
|(2) On or after the claim is allocated but before the Court list the claim for trial||£2,500||£2,300 plus 20% of damages||£4,000 plus 25% of the damages||£6,400 plus 40% of damages plus £760 per extra defendant|
|(3) On or after the date the Court list it for a trial but before trial||£3,800||£3,200 plus 20% of damages||£5,100 plus 30% of damages||£7,900 plus 40% of damages plus £760 per extra defendant|
|If the claim is disposed of at trial|
|£3,800||£3,200 plus 20% of damages||£5,100 plus 30% of damages||£7,900 plus 40% of damages plus £760 per extra defendant|
|Trial advocacy fees|
|(1) Where the value of the claim is not more than £3,000||£580||£580||£580||£1,600|
|(2) where the value of the claim is more than £3,000 but not more than £10,000||£820||£820||£820||£1,600|
|(3) Where value more than £10,000 but less than £15,000||£1,200||£1,200||£1,200||£2,100|
|(4) Where value more than £15,000||£2,000||£2,000||£2,000||£2,900|
|Rules 45.46 Specialist Legal advice|
|A. Providing post-issue advice in writing or conference||£1,000|
|B. Drafting a statement of case||£500|
TABLE 14 (RULE 45.50): FIXED COSTS – INTERMEDIATE TRACK
|Stage||Band 1||Band 2||Band 3||Band 4|
|S1 Pre-issue up to and including date of service of defence||£1,600 + 3% of damages||£5,000 + 6% of damages||£6,400 + 6% of damages||£9,300 + 8% of damages|
|S3 From date of service of defence up to the earlier date set for CMC or the order giving directions under 28.2||£4,000 + 10% of damages||£7,700 + 12% of damages||£9,100 + 12% of damages||£13,000 + 14% of damages|
|S4 From the end of stage 3 up to and including the date set by the Court for inspection of documents||£4,600 +12% of damages||£9,400 + 14% of damages||£11,000 + 14% of damages||£16,000 + 16% of damages|
|S5 From the end of stage 4 up to and including the dates set by the Court for service of witness statements or experts report||£5,200 + 12% of damages||£11,000 + 16% of damages||£12,000 + 16% of damages||£20,000 + 18% of damages|
|S6 From then end of stage 5 up to and including date set for PTR or 14 days before trial whichever is earlier||£5,900 + 15% of damages||£15,000 + 16% of damages||£16,000 + 16% of damages||£24,000 + 18% of damages|
|S7 Specialist legal representative advising in writing or in conference following defence||£1,400||£1,700||£2,300||£2,900|
|S8 End of stage 6 up to the date of trial||£6,600 + 15% of damages less £580 if party didn’t prepare the trial bundle||£17,000 + 20% of damages less £870 if party didn’t prepare the trial bundle||£19,000 + 20% of damages less £1,120 if party didn’t prepare the trial bundle||£29,000 + 22% of damages less £1,400 if party didn’t prepare the trial bundle|
|S9 Attendance of legal representative (other than trial advocate) at trial per day, 50% if day last half day||£580||£870||£1,200||£1,400|
|S10 Advocacy fee: day 1||£3,200||£3,500||£4,000||£5,800|
|s11 Advocacy fee: subsequent days- 50% if half day||£1,400||£1,700||£2,000||£2,900|
|S12 Hand down of judgment and consequential matters||£580||£580||£580||£580|
|S13 ADR: additional fee payable once only where a mediation or joint settlement meeting takes place||£1,200||£1,200||£1,200||£1,200|
|S14 ADR: additional fee payable once only for specialist legal representative attendance at a mediation or JSM covered by s13||£1,400||£1,700||£2,000||£2,300|
|S15 Approval of settlement for child unless the settlement approved at trial||£1,200||£1,400||£1,700||£2,000|