Fixed Recoverable Costs

From 1 October 2023 fixed recoverable costs (FRC) will be extended for claims up to £100,000. This is seen as the biggest change in civil justice for a decade and the Ministry of Justice has now published draft rules so that all stakeholders can understand the implications.

The intention is to drive efficiencies in how these cases are handled. The introduction of the intermediate track for cases valued at over £25,000, up to £100,000 will create a more streamlined process for litigating these cases.

We have set out below the headline points you need to be aware of now. Some further detail is provided in the links below. We have explained the overall structure of the new process; further alerts will follow on areas of detail between now and October.

FRC will apply to all claims where proceedings are issued on or after 1.10.23, except they will not apply in:

• Personal injury (PI) claims where the accident occurred before 1.10.23.
• Disease claims where a letter of claim has been sent before 1.10.23.

There is a new intermediate track. Click here for more detail.

FRC will apply to all types of claim that fall within the parameters for the fast track or intermediate track, unless expressly excluded. Click here for more detail.

Existing fast track claims will be assigned to 1 of 4 bands for complexity. Click here for more detail.

The fast track structure incorporates existing FRC for PI claims up to £25,000.

The intermediate track also has 4 bands for complexity, but with different criteria. Click here for more detail.

FRC will also be implemented for noise induced hearing loss claims. Click here for more detail.

Part 45 of CPR has been completely restructured to cover FRC. Click here for more detail.

The tables for FRC are now all in Practice Direction 45. Click here for more detail. The figures for FRC from Jackson’s 2017 report and from the CJC’s report on noise claims have been uprated for inflation.

Additional costs may be awarded:

• In exceptional circumstances (as per existing rules).
• Also where additional costs are incurred as a result of a claimant’s vulnerability (new). Click here for an explanation of how this works.