Fixed Recoverable Costs Regime and the Intermediate Track
The Fixed Recoverable Costs Regime (FRC) came into effect on 1 October 2023 and provides changes to the management of and costs of litigation claims moving forward.
What is the FRC Regime?
The FRC Regime sets out the amount of legal costs which a winning party is entitled to recover from the losing party, by giving a specified sum the winning party will be entitled to. This is done by reference to a table contained within CPR45 and the costs are defined for each set stage in the litigation process such as issuing proceedings, issuing a defence, preparing witness statements and advocacy costs.
What claims does this affect?
The FRC affects most civil claims worth up to £100,000 and applies to all cases allocated to either the fast track or the new intermediate track.
What is the new Intermediate Track?
All litigation cases are allocated to a “track” which governs the procedure under which they are dealt with depending on the complexity. There are now 4 tracks and these are :-
- Small Claims Track – this covers claims with a value of up to £10,000
- Fast Track – this covers claims with a value of £10,000 to £25,000 with a trial expected to last 1 day or less
- The new Intermediate Track – this covers claims with a value of £25,000 to £100,000 with a trial estimated to be 3 days or less
- Multi Track – this covers claims of a value of £25,000 or more which are complex
Why introduce this regime?
The aim of the fixed costs regime is to bring predictability to costs exposure and recovery. The table clearly sets out what the costs should be for each stage of the litigation process which the unsuccessful party will be ordered to pay by the court.
This also encourages parties to deal with each of the litigation stages at a proportionate cost.
Will this be reviewed?
Due to the unpredictability of the economy, it has been agreed by the Minster of Justice that the fixed costs regime will be reviewed every 3 years.
For further guidance regarding litigation matters and recoverable costs, please contact Chloe May on 01604 887455 or email at chloe.may@maxengel.co.uk
