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Fixed recoverable costs extension set for next April

Fixed recoverable costs (FRC) are likely to be extended from next April.

Officials at the Ministry of Justice have confirmed the start date for the change, subject to Civil Procedure Rule Committee agreement.

It is thought the fixed recoverable costs will be imposed across the fast-track and in most money cases worth up to £100,000.

The MoJ had said it would take on the recommendations of Sir Rupert Jackson from back in 2017 in a bid to reduce the cost of litigation and create more certainty about what losing parties have to pay.

The reforms include new rules on penalising delays in the resolution of cases, with an uplift where a Part 36 offer has been beaten or one party has behaved unreasonably.

The MoJ will also consult on ensuring parties or witnesses classed as vulnerable are not disadvantaged if their cases are within the scope of FRC.

It also proposes to give judges discretion to determine whether the vulnerability of those involved has required extra work which would justify additional costs. This process would allow for a 20% uplift and would only apply retrospectively – so judges need to be satisfied that extra work has been incurred, not that it may need to be.

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