The Civil Procedure (Amendment No.2) Rules 2023 come into force on 1 October 2023. The aim of this rule change is to ensure that legal costs are more certain and proportionate across a wider range of civil claims.

 

The key features of the new Rules are:

 

• A new intermediate track and corresponding fixed recoverable costs for less complex claims valued at more than £25,000, but not more than £100,000.
• The extension of fixed recoverable costs to all civil claims across the fast track, including a new process and separate table of costs for Noise Induced Hearing Loss claims valued up to £25,000.
• Fixed recoverable costs will apply to all cases in the fast track and the new intermediate track, with some limited exceptions.
• Rule 45.10 sets out specific provisions for vulnerable parties and witnesses under the extended fixed recoverable costs regime.
• The arrangements for Part 36 offers to settle in low value personal injury cases already subject to fixed recoverable costs have been updated to cover all fixed recoverable costs claims.

 

Within the fast and intermediate tracks, claims will now be assigned to one of four complexity bands (four for each track) which will provide an ascending scale of fixed costs increasing as complexity does.

 

CPR rule 26.9(10) specifies a number of claims which must be allocated to the multi-track and will not be on the intermediate or fast, these are:

 

• Mesothelioma or asbestos lung disease claim.
• Claims for clinical negligence, unless (i) the claim is one which would normally be allocated to the intermediate track; and (ii) both breach of duty and causation have been admitted.
• Claims for damages in relation to harm, abuse or neglect of or by children or vulnerable adults.
• Claims that the court could order to be tried by jury if satisfied there is in issue a matter set out in section 66(3) of the County Courts Act 1984 or section 69(1) of the Senior Courts Act 1981.
• Claims against the police involving an intentional or reckless tort, or relief or relief or remedy in relation to the Human Rights Act 1998. This exclusion does not apply to a road accident claim arising from negligent police driving, an employer’s liability claim, or any claim for an accidental fall on police premises.

 

Changes are also going to be made to Part 36. The Rules update the arrangements regarding Part 36 offers to cover claims in the fast and intermediate tracks. In respect of those claims, where judgment against the defendant is at least as advantageous to the claimant as the claimant’s Part 36 offer, rule 36.24 provides that costs will no longer be awarded on the indemnity basis under rule 36.17(4), but will instead be a percentage (35%) of the costs specified and calculated in accordance with rule 36.24(5).

 

So, what cases will this apply to and when? These rules will apply to claims where proceedings are issued on or after 1 October 2023, apart from personal injury and disease claims. The new fixed recoverable costs regime will apply to personal injury claims where the cause of action accrues on or after 1 October 2023; and will only apply to disease claims where the letter of claim has not been sent to the defendant before 1 October 2023.

 

The new rules are available here: https://www.legislation.gov.uk/uksi/2023/572/pdfs/uksi_20230572_en.pdf