Lexis®Library update: The draft changes to the CPR have been approved, but the rules have not yet been made by the CPRC, nor approved by Ministry of Justice (MoJ) ministers. The full statutory instrument will be laid before Parliament, following ministerial approval, in May 2023. The report concerns fixed recoverable costs (FRC) which from 1 October 2023 will be extended across the fast track, and in a new intermediate track for simpler cases valued up to £100,000 damages. This note sets out the developments on the exceptions to the FRC, MoJ consultations, future review of the FRC and its differing application.
CPR 45 (fixed costs) has largely been rewritten and a new Practice Direction 45 sets out the relevant tables of costs. Changes have also been made to CPR 26 (case management - preliminary stage) and the accompanying PD. Changes have also been made to CPR 28 (fast track) and CPR PD 28. Furthermore, changes have been made to CPR 36 (offers to settle) to allow the claimant to obtain additional costs (instead of costs on the indemnity basis) where judgment against the defendant is at least as advantageous to the claimant as the proposals contained in a claimant’s Part 36 offer. These additional costs are equivalent to 35% of the difference between the fixed costs from the stage (in the applicable table in Practice Direction 45) from when the relevant period expired to the date of judgment.
Contents of the draft:
• the fast track for claims with a value of up £25,000 will have four complexity bands (one to four in ascending order of complexity) with associated grids of costs for the stages of the claim
• there will be a separate intermediate track where less complex multi-track cases under £100,000 damages will be allocated. It will consist of four complexity bands (one to four in ascending order of complexity) with associated grids of costs for the stages of a claim
• the new FRC will apply where proceedings are issued on or after 1 October 2023, save for personal injury. It will apply to personal injury claims where the cause of action accrues on or after 1 October 2023. It will only apply to disease claims where the letter of claim has not been sent to the defendant before 1 October 2023
• the figures of FRC costs in the 2017 Jackson report, have been uprated for inflation using the January 2023 Services Producer Price Index (SPPI). The MoJ proposes to review the tables of costs and the extended FRC regime more generally in 3 years’ time
• in May 2022, MoJ consulted on two issues. The first was Qualified One-way Costs Shifting (QOCS) whereby following the consultation, the government has implemented the rule changes on QOCS. The second concerned the vulnerability provisions that are to be implemented as part of the wider extension of FRC. The government has implemented the rule changes on vulnerability as set out in the consultation and does not propose to make any changes to the arrangements for disbursements for vulnerability in FRC cases
• FRC will apply to all cases in the fast track and intermediate track with some exceptions. The implementation of FRC to housing claims will be delayed for two years from October 2023. Additionally, the MoJ proposed that some claims, due to their complexity, should be excluded from FRC. These are set out in rule 26.9(10) of the new draft rules
• the government’s proposals on introducing FRC for clinical negligence cases up to £25,000 are not being introduced as part of this package of reforms
• this draft also details the application of FRC in different types of claims covering FRC for or including non-monetary relief, FRC where a lawyer is representing more than one claimant, FRC in counterclaims and FRC where there is a preliminary issue trial
There will also be amendments to applicable court forms. The table of HMRC fixed commencement costs which were previously located in Table 7 of Part 45 has been simplified and is now at Table 11 in Part 45.
The provisions in respect of scale costs in the Intellectual Property and Enterprise Court have not been amended.
Read the full report here.
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 21 April 2023 and is published with permission. Further information can be found at: www.lexisnexis.co.uk
