Karim Ghaly and Victoria Butler-Cole look at the fixed costs regime for low value motor claims
The fixed costs regime set out in s II of CPR Pt 45 was intended to simplify the recovery of costs in modest road traffic accident (RTA) claims where settlement is achieved without the need for proceedings. Unfortunately, a misapprehension about the effect of the regime has resulted in disputes over the terms of purported compromises, and claims which subsist despite the parties’ belief that settlement has been achieved.
Section II of CPR Pt 45 prescribes what may be recovered, under CPR 44.12A, in costs-only proceedings arising out of motor claims where the accident occurred on or after 6 October 2003, where the claim settled without the issue of proceedings, and where damages did not exceed £10,000.
To bring proceedings under CPR 44.12A it is necessary that “the parties to a dispute have reached an agreement on all issues (including which party is to pay the costs) which is made or confirmed in writing; but…they have failed to agree the amount
