Getting To Grips With The Courts Fixed Recoverable Costs Regime
The extended fixed recoverable costs regime has been in force since 01 October 2023 and it has extended to many litigation claims with a value of up to £100,000.00.
WHAT ARE FIXED RECOVERABLE COSTS?
Fixed recoverable costs (FRC) are costs that are recoverable by one party (usually the successful party) from another. Either the amount of costs recoverable or the method by which the costs are calculated is prescribed, meaning that they are set by the Civil Procedure Rules (CPR) and parties can get some certainty in the amount of costs they are able to recover in litigation, without the need for costs management or assessment at the end of proceedings.
FRC apply in the following types of claims:-
- Uncontested proceedingsEnforcement proceedings regarding enforcement of (money) judgments.
- Certain specialist litigation.
- Claims on the fast track.
- Claims on the intermediate track.
WHAT IS THE FAST TRACK?
The fast track is designed to provide a quicker, simpler procedure, for lower value cases that do not require detailed preparation or a lengthy trial.
The fast track is the usual track for civil claims if:
- The claim is for monetary relief with a value of up to £25,000.
- The trial is likely to last no more than one day.
- Oral expert evidence is likely to be limited to one expert per party per field and expert evidence in only two fields.
For claims issued on or after 1 October 2023, when a claim is allocated to the fast track, the court must also assign it to a complexity band. The complexity bands provide an ascending scale of FRC with the complexity of the claim. Therefore, the complexity band to which the claim is assigned will determine the amount of FRC allowed.
WHAT IS THE INTERMEDIATE TRACK?
Civil cases with a value between £25,000 and £100,000, unless there are multiple parties or unusual Legal complexity.
A case will be allocated to the Intermediate track where:
- The claim is not suitable for the fast track or small claims track.
- The claim includes a claim for monetary relief which is valued at not more than £100,000.
- The court considers that, with proper management:
- the trial will not last longer than three days;
- oral expert evidence is likely to be limited to two experts per claim;
- there are no additional factors which make the claim inappropriate for the intermediate track.
- The claim is brought by one claimant against either one or two defendants or is brought by two claimants against one defendant.
WHERE CAN I FIND THE AMOUNT OF FRC THAT COULD BE RECOVERED IF SUCCESSFUL IN THE CLAIM?
A table detailing the amounts recoverable as FRC for fast track and intermediate track claims can be found within Practice Direction 45 (PRACTICE DIRECTION 45 – TABLES OF FIXED COSTS (2024) (justice.gov.uk))
SHOULD I ISSUE LEGAL PROCEEDINGS?
If you find yourself in a position where you require legal assistance and believe that you may need to issue legal proceedings, BRM can assist with your requirements and thoroughly explain the Court process and the amount of FRC that you may be able to recover.
It is important to take the above information into consideration when deciding whether you should take legal action. You can contact BRM’s Dispute Resolution Department for further information.
