Considering making a civil claim?
Important Costs Update
In 2022, there will be 2 important changes made to the Justice system in England and Wales; the extension of Fixed Costs and the expansion of the Fast Track. This article tackles the first; the extension of fixed costs.
What are fixed costs?
“Costs” in this context means the costs incurred by a party during, and as a direct result of, a court case. The most common example is lawyers’ fees.
The general rule is that the costs of the winning party are paid by the losing party, but the Court can make a different order.
The Civil Procedure Rules (CPR) provide for fixed costs in certain elements of civil proceedings, including Small Claims, Fast Track hearings, and possession claims. Fixed costs limit the costs recoverable to a minimal, prescribed list of costs. In such cases, any costs applied for that are not fixed costs are unlikely to be awarded by the Court.
In 2022 fixed costs will apply to all civil claims valued up to £100,000, with very limited exceptions. This means that costs beyond fixed costs are much less likely to be awarded.
What does this mean for me?
It means that if you begin your case in 2022 after fixed costs are extended, then you and your lawyer need to be aware of the prescribed limits for your case. Keep costs as low as possible to avoid incurring lawyers’ fees, experts’ fees, and other fees that you cannot recover from the other side and may well end up having to pay out of your own pocket.