The new rules for fixed recoverable costs (FRC) took effect from 1 October, following on from the government's announcement as far back as September 2021 (see our blog post here). The regime applies only to claims allocated to the fast track (up to £25,000) and less complex claims between £25,000 and £100,000 which are allocated to a new "intermediate track". It will therefore not affect larger commercial cases.
The new regime set outs various criteria for where claims are likely to be allocated to the intermediate track, including not only the financial value but also that: the trial will be no more than three days; there will be no more than two experts per party giving evidence at trial; there are no more than two claimants or defendants; and there are no additional factors that would make the claim inappropriate for the intermediate track.
Where there is a claim for non-monetary relief, the claim will not be allocated to the intermediate track unless the court considers that to be in the interests of justice. There are various types of case which are excluded from the new track such as mesothelioma claims, clinical negligence claims (unless breach of duty and causation have been admitted) and claims for harm, abuse or neglect of or by children or vulnerable adults.
The regime fixes the amount of costs that can be recovered by the successful party at different stages of the litigation. The relevant amounts for cases in the intermediate track vary depending on which of four complexity bands have been assigned to the claim, and are set out at Table 14 in CPR Practice Direction 45.
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