Extension of Fixed Recoverable Costs
21st June 2023
From 1 October 2023, fixed recoverable costs (FRC) will be extended to cover claims worth under £100,000 in damages, that are not particularly complex and a new Intermediate track will be created for claims worth between £25,000 and £100,000.
The draft rules were published on 20 April but there is a small possibility that these rules may be amended before they come into force.
The new FRC rules will apply as follows:
- Personal Injury claims: where the cause of action accrues on or after 1 October 2023
- Disease claims: where the letter of claim has not been sent out before 1 October 2023; and
- To All Other Claims: issued on or after 1 October 2023.
The proposals currently exclude clinical negligence claims and for now, also exclude housing claims.
Civil Procedure Rules (CPR) 26.9 also confirms that complex claims such as mesothelioma claims, claims in relation to harm, abuse or neglect of or by children or vulnerable adults and claims against the police involving intentional or reckless tort or in relation to the Human Rights Act will be allocated to the multi-track rather than the new intermediate track.
There have been substantial changes to Civil Procedure Rules Part 45 which has largely been re-written and a new Practice Direction 45 setting out the relevant tables of fixed costs. There have also been changes to Civil Procedure Rules and Practice Direction 26 dealing with Case Management, Civil Procedure Rules and Practice Direction 28 dealing with the Fast Track and the new Intermediate Track as well as CPR 36 (Part 36 Offers to Settle).