Civil Procedure Rules 2023 Update
For claims issued after 1 October 2023 the Civil Procedure Rules 2023 have changed costs recovery for civil litigation.
The New Intermediate Track
Cases with a value of up to £10,000 will be allocated to the Small Claims Track.
Those over £10,000 but not more than £25,000 will be allocated to the Fast Track, cases over £25,000 and up to £100,000 will be allocated to the new Intermediate Track, and cases over £100,000 will be allocated to the Multi Track.
All Tracks except the Multi Track will be subject to the new Fixed Costs Regime meaning litigants in the majority of cases will need to be mindful of the new rules.
On the Fast Track, trial can last no longer than one day, and expert evidence is likely to be limited to 1 expert per party.
On the Intermediate Track, provided the case is managed proportionately, the trial should last no longer than 3 days and experts will be limited to no more than 2 per party.
New Complexity Bands
One of the main changes to the new regime is that cases allocated to the Fast or Intermediate Track will be allocated to one of four complexity bands. Where possible, parties should agree the complexity band of the case, but generally cases will be allocated as follows:
Band 1: Claims where only one issue is in dispute and the trial is expected to last no more than one day. This includes personal injury claims where quantum or liability is in dispute, non-personal injury Road Traffic Accident claims and defended debt claims.
Band 2: Less complex claims with more than one issue in dispute, including personal injury claims in which quantum and liability are in dispute.
Band 3: More complex claims where more than one issue is in dispute; but the claim is not suitable for assignment to complexity band 2.
Band 4: More complex claims, not suitable for assignment into complexity bands 1 to 3. This includes personal injury claims where there are serious issues of law or fact.
It should be noted that Housing Claims (such as possession proceedings) are excluded from the intermediate track.
Changes to Part 36
The aim of Part 36 has always been for parties to settle cases before trial saving considerable time, expense, and stress. The regime has always come with costs consequences for parties who unreasonably refuse realistic offers.
The new CPR Part 36 provides that an additional 35% of costs will be awarded where the claimant obtains judgment against the defendant which is at least as advantageous to the claimant as their Part 36 offer. This means that if a claimant makes a Part 36 offer and the defendant does not accept it and the claimant is awarded at trial an amount equal to or more than the Part 36 offer, the claimant will be entitled to recover the costs from the defendant (at the FRC rates) plus an additional 35%. The clear purpose of this is to encourage defendants to accept Part 36 offers. Defendants will not benefit from the new 35% additional amount to be awarded. This is a major consideration for Defendants who receive Part 36 offers.
If you have any questions about the new Fixed Costs Regime and how this could affect your case, please contact our Dispute Resolution Department on 01143497000.