The MOJ has approved the proposed uplift to the fixed costs for trial advocacy fees for Fast and Intermediate Track trials to take effect from 6th April 2024. This article will summarise the changes to be brought in and provide a brief overview as to solicitors costs in the Fast and Intermediate Track.
SUMMARY - THE CHANGES
The changes that come into force from 6 April 2024 will apply to all civil litigation claims issued on after 1st October 2023 save for Personal Injury matters; where they will apply to cases where cause of action accrued on or after 1st October 2023 i.e. from the date of injury or when a reasonable person should have had knowledge of the injury.
For matters allocated to the Fast Track the changes are as follows:
Where a claim is settled or a hearing vacated the day of the day before the trial date: 100% of the advocacy fee will be recoverable.
Where a claim is settled or a hearing vacated or settled not more than 2 days before the trial date: 75% of the applicable advocacy fee will be recoverable.
While in the Intermediate Track from 6th April 2024:
For claims settled or hearing vacated the day of or the day before trial: 100% of the advocacy fee will be recoverable.
For claims settled or hearing vacated not more than 5 days before the day of trial: 75% of the advocacy fee will be recoverable.
The differences between the 2 tracks is explained by virtue of the fact that claims allocated to the Intermediate track are of greater complexity (value £25'000 - £100'000) and so, longer preparation will generally be required of advocates.
FIXED RECOVERABLE COSTS (FRC)
Following the introduction of 'the Jackson Reforms' the costs victorious solicitors can recover from their defeated rivals was fixed depending on the value of the claim and the corresponding 'track' that they were allocated to.
These FRC for the Fast and Intermediate Track can be found at Table 12 and Table 14 of CPR PD 45 'Tables of Fixed Costs.'
The amount your solicitor is able to recover, depends on what stage the proceedings have reached and what complexity band the
FAST TRACK: TABLE 12 (with changes applied)
Complexity Band | Complexity Band | Complexity Band | Complexity Band | |
1 | 2 | 3 | 4 | |
A. If Parties reach a settlement prior to the claimant issuing proceedings under Part 7 | ||||
(1) Where damages are not more than £5,000 | £ Nil | The greater of £681 or £124 + an amount equivalent to 20% of the damages | £1,136 + an amount equivalent to 17.5% of the damages | In each case— £2,684 + an amount equivalent to 15% of the damages + £526 per extra defendant |
(2) Where damages are more than £5,000, but not more than £10,000 | £ Nil | £1,342 + an amount equivalent to 15% of damages over £5,000 | £2,271 + an amount equivalent to 12.5% of damages over £5,000 | |
(3) Where damages are more than £10,000 | £599 | £2,374 + an amount equivalent to 10% of damages over £10,000 | £3,097 + an amount equivalent to 10% of damages over £10,000 | |
B. If proceedings are issued under Part 7, but the case settles or is discontinued before trial | ||||
(1) On or after the date that the court issues the claim, but before the date that the court allocates the claim under Part 26 | £2,168 | £1,445 + an amount equivalent to 20% of the damages | £3,303 + an amount equivalent to 20% of the damages | £3,097 + an amount equivalent to 40% of the damages + £785 per extra defendant |
(2) On or after the date that the court allocates the claim under Part 26, but before the date that the court lists the claim for trial | £2,581 | £2,374 + an amount equivalent to 20% of the damages | £4,129 + an amount equivalent to 25% of the damages | £6,607 + an amount equivalent to 40% of the damages + £785 per extra defendant |
(3)On or after the date that the court lists the claim for trial but before trial | £3,923 | £3,303 + an amount equivalent to 20% of the damages | £5,265 + an amount equivalent to 30% of the damages | £8,155 + an amount equivalent to 40% of the damages + £785 per extra defendant |
C. If the claim is disposed of at trial | ||||
| £3,923 | £3,303 + an amount equivalent to 20% of the damages agreed or awarded | £5,265 + an amount equivalent to 30% of the damages agreed or awarded | £8,155 + an amount equivalent to 40% of the damages agreed or awarded + £785 per extra defendant |
D. Trial advocacy fees | ||||
(1) Where the value of the claim is not more than £3,000 | £619 | £619 | £619 | £1,652 |
(2) Where the value of the claim is more than £3,000, but not more than £10,000 | £877 | £877 | £877 | £1,652 |
(3) Where the value of the claim is more than £10,000, but not more than £15,000 | £1,342 | £1,342 | £1,342 | £2,168 |
(4) Where the value of the claim is more than £15,000 | £2,168 | £2,168 | £2,168 | £2,994 |
(5) Where the claim is listed for trial, but is removed from the list or settled— on the day of trial; or not more than 1 day before the date listed for trial | 100% of the applicable trial advocacy fee | |||
(6) Where the claim is listed for trial, but is removed from the list or settled more than 1 day, but not more than 2 days, before the date listed for trial | 75% of the applicable trial |
INTERMEDIATE TRACK: TABLE 14 (with changes applied)
Complexity Band | Complexity Band | Complexity Band | Complexity Band | |
Stage | 1 | 2 | 3 | 4 |
S1 From pre-issue up to and including the date of service of the defence | £1,652 + an amount equivalent to 3% of the damages | £5,162 + an amount equivalent to 6% of the damages | £6,607 + an amount equivalent to 6% of the damages | £9,601 + an amount equivalent to 8% of the damages |
S2 Specialist legal representative providing post-issue advice in writing or in conference or drafting a statement of case | £2,065 | £2,065 | (a) £2,374; or (b) £3,613 if counsel is also instructed to draft a defence to a counterclaim | (a) £2,374; or (b) £3,613 if counsel is also instructed to draft a defence to a counterclaim |
S3 From the date of service of the defence up to the earlier of the date set for CMC or the order giving directions under 28.2 | £4,129 + an amount equivalent to 10% of the damages | £7,949 + an amount equivalent to 12% of the damages | £9,394 + an amount equivalent to 12% of the damages | £13,420 + an amount equivalent to 14% of the damages |
S4 From the end of Stage 3 up to and including the date set by the court for inspection of documents | £4,749 + an amount equivalent to 12% of the damages | £9,704 + an amount equivalent to 14% of the damages | £11,356 + an amount equivalent to 14% of the damages | £16,517 + an amount equivalent to 16% of the damages |
S5 From the end of Stage 4 up to and including the later of the dates set by the court for service of witness statements or expert reports | £5,368 + an amount equivalent to 12% of the damages | £11,356 + an amount equivalent to 16% of the damages | £12,388 + an amount equivalent to 16% of the damages | £20,647 + an amount equivalent to 18% of the damages |
S6 From the end of Stage 5 up to and including the date set for the pre-trial review or up to 14 days before the trial date, whichever is earlier | £6,091 + an amount equivalent to 15% of the damages | £15,485 + an amount equivalent to 16% of the damages | £16,517 + an amount equivalent to 16% of the damages | £24,776 + an amount equivalent to 18% of the damages |
S7 Specialist legal representative advising in writing or in conference following the filing of a defence | £1,445 | £1,755 | £2,374 | £2,994 |
S8 From the end of Stage 6 up to the date of the trial | £6,813 + an amount equivalent to 15% of the damages, less £599 if that party did not prepare the trial bundle | £17,550 + an amount equivalent to 20% of the damages, less £898 if that party did not prepare the trial bundle | £19,614 + an amount equivalent to 20% of the damages, less £1,239 if that party did not prepare the trial bundle | £29,938 + an amount equivalent to 22% of the damages, less £1,445 if that party did not prepare the trial bundle |
S9 Attendance of a legal representative (other than the trial advocate) at trial per day, less an amount equivalent to 50% per day where, on any day, the trial lasts no more than half a day | £599 | £898 | £1,239 | £1,445 |
S10 Advocacy fee: day 1 | £3,303 | £3,613 | £4,129 | £5,988 |
S11 Advocacy fees for subsequent days, less an amount equivalent to 50% per day where, on any subsequent day, the trial lasts no more than half a day | £1,445 | £1,755 | £2,065 | £2,994 |
S12 Handing down of a reserved judgment and consequential matters, where dealt with separately from the trial | £599 | £599 | £599 | £599 |
S13 Alternative Dispute Resolution: additional fee payable once only where a mediation or joint settlement meeting takes place | £1,239 | £1,239 | £1,239 | £1,239 |
S14 Alternative Dispute Resolution: additional fee payable once only for specialist legal representative attendance at a mediation or joint settlement meeting covered by S13 | £1,445 | £1,755 | £2,065 | £2,374 |
S15 Approval of settlement for child, unless the settlement is approved at trial | £1,239 | £1,445 | £1,755 | £2,065 |
S16 Advocacy fee— (a) where the claim is listed for trial, but is removed from the list or settled— (i) on the day of trial; or not more than 1 day before the date listed for trial; | 100% of the applicable advocacy fee in S10 | |||
(b) where the claim is listed for trial, but is removed from the list or settled more than 1 day, but not more than 5 days, before the date listed for trial | 75% of the applicable advocacy fee in S10 |
While often overlooked, for completeness we should draw your attention to Table 12: CPR r.45.46 - Providing Specialist Legal Advice:
A. Providing post-issue advice in writing or in conference | £1,000 |
B. Drafting a statement of case | £500 |
These figures appear to have been left unchanged.
COMMENT
Fixed Recoverable Costs were the brainchild of Lord Rupert Jackson following intense lobbying from the insurance industry. The background of how insurers successfully hoodwinked successive governments and law lords is not relevant nor is it material that they lead to the collapse of the entire legal sector. The fact is, FRCs are here to stay and we all need to learn to live in a world where nobody can ever get through to their solicitor, cases are rushed and run by armies of paralegals, courts are forever clogged and all because someone is too proud to admit they were taken for a ride.
We regularly act as advocate on instruction from an increasing variety of lay, commerical and legal clients in all sector across the England & Wales. We have acted for both Claimants and Defendants in a variety of trials and successfully argued for and against the recoverability of costs. Should you require a Solicitor-Advocate or need legal advice then contact us today.
DEFINITVE - DECISIVE - DIRECT
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