Costs often are an important factor that should be considered before proceeding with litigation. There are different tracks to which a claim can be allocated and this will be determined by the value of the claim. This article will consider the first three track allocations and the cost implications of each.
Small Claims Track
Any count court claim that does not exceed a value of £10,000 is usually allocated to the small claims track. The small claims track has a lower level of risks for costs than the other tracks.
In the majority of cases, each party is to pay their own legal costs. This is on the basis that that the small claims track was designed for parties to litigate themselves. The court is limited to ordering costs on the following basis:
Fixed Costs with issuing a claim
Court fees
Expenses for a witnesses to attend a hearing
Loss of earnings
Expert fees
Costs where a party has behaved unreasonably
Therefore, only limited costs are recoverable on claims which are allocated in the small claims track.
Fast Track
Fast Track Claims are claims that are valued between £10,000 and £25,000 and are more complex than those allocated to the Small Claims Track however can still be resolved quickly.
Fast Track trials are expected to be completed within one day and there is a prepared structure which imposes time limited and restrictions on evidence and disclosure requirements.
Costs in the fast track are fixed to what a solicitor can claim for the preparation and attendance at a trial and the court is limited to award any more or any less than those fixed amounts. These are known as Fixed Recoverable Costs. This was recently amended on 1 October 2023.
The Fast Track also allocates matters to one of four complexity bands, those being:
Complexity Band 1
road traffic accident related, non-personal injury claims; and
defended debt claims
Complexity Band 2
road traffic accident related personal injury claims which are or should have been started under the RTA Protocol; and
personal injury claims to which the Pre-action Protocol for Resolution of Package Travel Claims apply
Complexity Band 3
road traffic accident related, personal injury claims to which the RTA protocol does not apply
employer’s liability (accident) and public liability personal injury claims;
possession claims;
housing disrepair claims;
other claims for a sum of money, whether the sum is specified or unspecified, except claims that fall under complexity band 1(b)
Complexity Band 4
employer’s liability disease claims (other than a claim for noise induced hearing loss);
complex possession and housing disrepair claims;
property and building disputes;
professional negligence claims; and
any claim which would normally be allocated to the fast track, but is nonetheless complex
The amount of fixed recoverable costs is decided by the complexity band the case is allocated to. The amount of fixed costs which can recovered can be found in PRACTICE DIRECTION 45 – TABLES OF FIXED COSTS (2024) – Justice UK – Table 12.
It is important to note that the fixed costs does not change the amount of legal fees incurred or charged. If you are successful and are awarded fixed costs, it is likely that there will be a shortfall between what is incurred in legal fees and what is recovered from the opposing party.
Intermediate Track
The Intermediate Track was introduced in reforms on 1 October 2023. The Intermediate track applies to cases valued at between £25,000 and £100,000 and the trial is not likely to last for more than three days.
Similar to the Fast Track, there are fixed recoverable costs that can be claimed and the amount recoverable will depend on what complexity band the case is allocated to. The intermediate track has different complexity bands:
Complexity Band 1
Any claim where:
only one issue is in dispute; and
the trial is not expected to last longer than one day, including-
personal injury claims where liability or quantum is in dispute;
road traffic accident related, non-personal injury claims; and
defended debt claims
Complexity Band 2
Any less complex claim where more than one issue is in dispute, including personal injury accident claims where liability and quantum are in dispute.
Complexity Band 3
Any more complex claim where more than one issue is in dispute but which is unsuitable for assignment to complexity band 2, including noise induced earing loss and other employer’s liability disease claims.
Complexity Band 4
Any claim which would normally be allocated to the intermediate track, but which is unsuitable for assignment to complexity bands 1 to 3, including any personal injury claim where there are serious issues of fact or law.
The amount of fixed costs which can recovered can be found in PRACTICE DIRECTION 45 – TABLES OF FIXED COSTS (2024) – Justice UK – Table 14
If you would like to discuss any claim you may have, including costs and any risks associated, please contact our Dispute Resolution Team below or call us on 01702 338338.
