PRACTICE DIRECTION 45 - FIXED COSTS

This Practice Direction supplements Part 45

Contents of this Practice Direction

Title Number
SECTION I – FIXED COSTS  
Fixed costs in small claims Para. 1.1
Claims to which Part 45 does not apply Para. 1.3
SECTION II – ROAD TRAFFIC ACCIDENTS: FIXED RECOVERABLE COSTS IN COSTS-ONLY PROCEEDINGS  
Scope Para. 2.1
Fixed recoverable costs formula Para. 2.5
Additional costs for work in specified areas Para. 2.6
Multiple claimants Para. 2.7
Information to be included in the claim form Para. 2.8
Disbursements Para. 2.10
SECTION IIIA – CLAIMS WHICH NO LONGER CONTINUE UNDER THE RTA OR EL/PL PROTOCOLS – DISBURSEMENTS  
Claims for loss of earnings: Rule 45.29I(2)(g) Para 2A.1
SECTION IV – SCALE COSTS FOR PROCEEDINGS IN THE INTELLECTUAL PROPERTY ENTERPRISE COURT  
Tables A and B Para. 3.1
SECTION VI – FAST TRACK TRIAL COSTS  
Scope Para. 4.1
SECTION VII – COSTS LIMITS IN AARHUS CONVENTION CLAIMS  
Limit on costs recoverable from a party in an Aarhus Convention claim: Rule 45.43 Para. 5.1
SECTION VIII - CLAIMS WHICH NO LONGER CONTINUE UNDER THE RTA OR EL/PL PROTOCOLS - DISBURSEMENTS  
Claims for loss of earnings: Rule 45.29I(2)(g) Para. 6.1

SECTION I – FIXED COSTS

Fixed costs in small claims

1.1 Under Rule 27.14 the costs which can be awarded to a claimant in a small claim include the fixed costs payable under Part 45 attributable to issuing the claim.

1.2 Those fixed costs are the sum of –

(a) the fixed commencement costs calculated in accordance with Table 1 of Rule 45.2;

(b) the appropriate court fee or fees paid by the claimant.

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Claims to which Part 45 does not apply

1.3 In a claim to which Part 45 does not apply, no amount shall be entered on the claim form for the charges of the claimant's legal representative, but the words ‘to be assessed’ shall be inserted.

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SECTION II – ROAD TRAFFIC ACCIDENTS: FIXED RECOVERABLE COSTS IN COSTS-ONLY PROCEEDINGS

Scope

2.1 Section II of Part 45 (‘the Section’) provides for certain fixed costs to be recoverable between parties in respect of costs incurred in disputes which are settled prior to proceedings being issued. The Section applies to road traffic accident disputes as defined in rule 45.9(4)(a), where the accident which gave rise to the dispute occurred on or after 6th October 2003.

2.2 The Section does not apply to disputes where the total agreed value of the damages is within the small claims limit or exceeds £10,000. Rule 26.8(2) sets out how the financial value of a claim is assessed for the purposes of allocation to track.

2.3 Fixed recoverable costs are to be calculated by reference to the amount of agreed damages which are payable to the receiving party. In calculating the amount of these damages –

(a) account must be taken of both general and special damages and interest;

(a) any interim payments made must be included;

(c) where the parties have agreed an element of contributory negligence, the amount of damages attributed to that negligence must be deducted;

(d) any amount required by statute to be paid by the compensating party directly to a third party (such as sums paid by way of compensation recovery payments and National Health Service expenses) must not be included.

2.4 The Section applies to cases which fall within the scope of the Uninsured Drivers Agreement dated 13 August 1999. The section does not apply to cases which fall within the scope of the Untraced Drivers Agreement dated 14 February 2003.

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Fixed recoverable costs formula

2.5 The amount of fixed costs recoverable is the sum of –

(a) £800;

(b) 20% of the agreed damages up to £5,000; and

(c) 15% of the agreed damages between £5,000 and £10,000.

For example, agreed damages of £7,523 would result in recoverable costs of £2,178.45 i.e.

£800 + (20% of £5,000) + (15% of £2,523).

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Additional costs for work in specified areas

2.6 The area referred to in rules 45.11(2), 45.18(5), 45.29C(2), 45.29E(2), 45.25F(5), 45.29G(2) and 45.29H consists of (within London) the area served by the County Court hearing centres at Barnet, Brentford, Central London, Clerkenwell and Shoreditch, Edmonton, Ilford, Lambeth, Mayors and City of London, Romford, Wandsworth, Willesden and Woolwich and (outside London) the County Court hearing centres at Bromley, Croydon, Dartford, Gravesend and Uxbridge.

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Multiple claimants

2.7 Where two or more potential claimants instruct the same legal representative, the provisions of the section apply in respect of each claimant.

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Information to be included in the claim form

2.8 Costs only proceedings are commenced using the procedure set out in rule 46.14. A claim form should be issued in accordance with Part 8. Where the claimant is claiming an amount of costs which exceed the amount of the fixed recoverable costs the claim form must give details of the exceptional circumstances to justify the additional costs.

2.9 The claimant must also include on the claim form details of any disbursements. The disbursements that may be claimed are set out in rule 45.12(1). If the disbursement falls within 45.12(2)(c) (disbursements that have arisen due to a particular feature of the dispute) the claimant must give details of the particular feature of the dispute that made the disbursement necessary.

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Disbursements

2.10 If the parties agree the amount of the fixed recoverable costs and the only dispute is as to the payment of, or amount of, a disbursement, then proceedings should be issued under rule 46.14.

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SECTION IIIA – CLAIMS WHICH NO LONGER CONTINUE UNDER THE RTA OR EL/PL PROTOCOLS – DISBURSEMENTS

Claims for loss of earnings: Rule 45.29I(2)(g)

2A.1 Where, under rule 45.29I(2)(g) (loss of earnings), the court allows a claim for any loss of earnings or leave by a party or witness due to attending a hearing or staying away from home for the purpose of attending a hearing, the specified sums, per day, for each person are—

(a)    £90, where the value of the claim for damages is not more than £10,000; and
(b)    £135, where the value of the claim for damages is more than £10,000.

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SECTION IV – SCALE COSTS FOR PROCEEDINGS IN THE INTELLECTUAL PROPERTY ENTERPRISE COURT

Tables A and B

3.1 Tables A and B set out the maximum amount of scale costs which the court will award for each stage of a claim in the Intellectual Property Enterprise Court.

3.2 Table A sets out the scale costs for each stage of a claim up to determination of liability.

3.3 Table B sets out the scale costs for each stage of an inquiry as to damages or account of profits.

Table A

Stage of a claim Maximum amount of costs
Particulars of claim £7,000
Defence and counterclaim £7,000
Reply and defence to counterclaim £7,000
Reply to defence to counterclaim £3,500
Attendance at a case management conference £3,000
Making or responding to an application    £3,000
Providing or inspecting disclosure or product/process description    £6,000
Performing or inspecting experiments    £3,000
Preparing witness statements    £6,000
Preparing experts' report    £8,000
Preparing for and attending trial and judgment    £16,000
Preparing for determination on the papers    £5,500

Table B

Stage of a claim Maximum amount of costs
Points of claim    £3,000
Points of defence    £3,000
Attendance at a case management conference    £3,000
Making or responding to an application   £3,000
Providing or inspecting disclosure    £3,000
Preparing witness statements    £6,000
Preparing experts' report    £6,000
Preparing for and attending trial and judgment    £8,000
Preparing for determination on the papers    £3,000

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SECTION VI – FAST TRACK TRIAL COSTS

Scope

4.1 Section VI of Part 45 applies to the costs of an advocate for preparing for and appearing at the trial of a claim in the fast track.

4.2 It applies only where, at the date of the trial, the claim is allocated to the fast track. It does not apply in any other case, irrespective of the final value of the claim.

4.3 In particular it does not apply to a disposal hearing at which the amount to be paid under a judgment or order is decided by the court (see paragraph 12.4 of Practice Direction 26)).

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SECTION VII – COSTS LIMITS IN AARHUS CONVENTION CLAIMS

Limit on costs recoverable from a party in an Aarhus Convention claim: Rule 45.43

5.1 Omitted.

5.2 Omitted.

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SECTION VIII - CLAIMS WHICH NO LONGER CONTINUE UNDER THE RTA OR EL/PL PROTOCOLS - DISBURSEMENTS

Claims for loss of earnings: Rule 45.29I(2)(g)

6.1 Where, under rule 45.29I(2)(g) (loss of earnings), the court allows a claim for any loss of earnings or leave by a party or witness due to attending a hearing or staying away from home for the purpose of attending a hearing, the specified sums, per day, for each person are-

(a) £90, where the value of the claim for damages is not more that £10,000; and

(b) £135, where the value of the claim for damages is more that £10,000.

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