Fixed Costs – What are they?
19 December, 2024
Fixed Costs – What are they?
As a purchaser of legal services, it may be that you have heard mention of the term “fixed costs” in litigation and have some idea what the terms refers to, or you may not have any prior knowledge of the term at all.
This is a short article that confirms the changes that have been in place a little over 1 year now.
Although fixed costs have been in place for many years in the personal injury sector, this article deals exclusively with general litigation and (in the main) money claims.
As with almost any aspect of law or procedure, fixed costs carry with them a multitude of exceptions that are beyond the scope of this article.
The key points to note are:
1) Fixed costs means that litigants (either a claimant or defendant in court proceedings) have certainty as to (a) the costs that they can recover from their opponent if they are successful in a case or (b) the costs that can be recovered against them by their opponent should they lose a case.
2) Generally speaking, any clam with a value of between £10,001 and £100,000 will be subject to the fixed costs regime.
3) The terms fixed costs does not mean that there is a fixed limit on what your solicitor charges you for the services they provide to you.
4) The cost of litigation is a key consideration in any case. Fixed costs provide the advantage of providing certainty as to the level of costs that can be recovered. This certainty can help shape case strategy and settlement offers.
5) The fixed costs are set by the Civil Procedure Rules (“CPR”) and take into account various factors including (i) the value of the claim, (ii) the complexity of the claim and (iii) the stage in the court process that the claim has reached when the matter concludes/settles (e.g. was this before or at trial).
Conclusion
The fixed costs regime does not remove the risk of paying your opponent’s costs but it does provide clarity as to what those costs will be and also provides clarity as to what costs can recover from your opponent if you are successful in your claim. This certainty plays a key role in assessing the risks and benefits of pursing (or defending) a claim.
Stuart Thomas
Associate Solicitor
For further information please email:
stuart.thomas@storrarcowdry.co.uk
