A new fixed recoverable costs regime came into force on 1 October 2023 which will have substantial impact on all civil cases issued in Court after that date for a value between £10,000 – £100,000.
The new rules fix the costs which a ‘winning’ party in litigation may recover from the losing party. There are extensive and complicated tables within the rules which set out the amount of recoverable legal costs, available at different stages of the litigation. The amount available to a party will depend on the stage at which the matter concludes.
The rules will impact claims of a value of £10,000 – £25,000, which are dealt with using a case management process called the ‘Fast Track’, and also cases from £25,000 – £100,000 which are dealt with on the newly created ‘Intermediate Track’. Each ‘Track’ will be split into 4 bands based on the type, value and complexity of the case.
At a relatively early stage, the Court will allocate a claim to a Track and assign a complexity band. The higher the track and band, the more costs which will be recoverable.
The new regime means that, from an early stage, the parties should be able to calculate the costs they are likely to recover if they win, and also their potential exposure in terms of the other parties’ costs if they lose.
The rules do not impose any limit on what a party may have to pay its lawyers, only the proportion of those fees which it may recover from the other side. Therefore, it will be important for clients to have clear discussions with their lawyers on these issues at the outset of their instructions.
Although the Tables are comprehensive, there is likely to be a lot of argument regarding the allocation of cases to a track and / or band as parties attempt to pre-empt the costs at play. Parties are encouraged to discuss these issues at an early stage and will need to monitor how the Courts interpret these rules in the early stages of their introduction.
To provide an idea of the costs implications for cases allocated to the Fast (Table 12) and Intermediate (Table 14) tracks, a link to the Tables can be found HERE
Berry Smith’s Dispute Resolution Team is happy to assist you in a dispute of any value and would be happy to discuss fee quotes or estimates in light of the new recoverable costs regime. Please do not hesitate to contact us on 02920 345 511 or disputeresolution@berrysmith.com
Antony Gibbons – Solicitor
Tel – 029 2034 5511
