Fixed Costs – UPDATE
The most awaited fixed recoverable costs rules for civil claims that were originally scheduled to come into effect in April 2023 are now due to be rolled out in October 2023.
This change was shortly announced after last month, Lord Justice Birss (deputy head of civil justice and a member of the Civil Procedure Rule Committee (“CPRC”)) had initially proposed that the CPRC had hoped to publish the new rules following its December meeting rather than waiting for its required ministerial approval. From bringing forward the new rules, to pushing them back has raised questions in the legal sector as to the number of changes forthcoming and whether the CPRC are thinking of taking a U turn.
The extension has been proposed to allow practitioners more time to prepare for the changes and adjust whilst the rules are redrafted. It was noted by the CPRC that the drafting of the ‘extremely complex set of reforms’ has proven to be a substantial task which has come with its challenges and issues.
The proposal essentially extends the fixed recoverable costs to most ‘simpler’ civil cases valued up to £100,000. It now appears set that the new intermediate track will be adopted in line with Sir Rupert Jackson’s recommendations of 2017. The present difficulty faced is that the new rules are likely to create a shortfall in the costs incurred and costs recoverable. Whilst lawyers will have their own retainer provisions with their clients, the extension of fixed costs is likely to stir up competition in the legal market.
Read more about the changes in our article from 2021 outlining the proposed changes:
Madhvi Panchal comments,
“These changes are highly anticipated, however at present, there is lack of certainty as to extent of impact these will have and to what cases the fixed recoverable costs regime will apply to. It is hoped that the new rules will simplify matters, however with the proposals with several bands do portray a rather complex structure, giving parties more to argue about. For now, watch this space!”
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