From 1 October 2023, Fixed Recoverable Costs (FRC) apply to the majority of civil cases with a value up to £100,000. However, these rules will vary depending on the type of claim.
The recoverable costs are set out in the Civil Procedure Rules.
FRC impose a limit on exactly how much the successful party can recover from the opposing party in civil litigation. From the outset, they provide certainty regarding the maximum amount the losing party will be entitled to pay to the winning party.
What is the purpose of FRC?
One of the main influential factors for the implementation of FRC relate to the concerns surrounding costs in medical negligence claims. Previously, costs were often not proportionate in such cases.
The Government’s aim is that FRC will reduce the financial risk for litigants by making the potential costs clear from the beginning.
Will FRC apply to my claim?
If your case falls within general civil litigation (i.e. not personal injury or medical negligence) FRC will apply regardless of when the cause of action occurred if proceedings are issued on or after 1 October 2023.
With regard to personal injury and medical negligence cases, FRC will only apply if the negligence occurred on or after 1 October 2023.
What cases fall outside of FRC?
Civil litigation covers a variety of cases with a range of potential compensation values.
For example, medical negligence claims up to £100,000 are an exception to FRC unless breach of duty and causation have been admitted.
Where FRC do not apply, the amount that the winning party can recover from the losing party will not be restricted by the recoverable costs set out in the Civil Procedure Rules.
What this means for you
These recent changes may affect whether a solicitor will be able to take your case under a Conditional Fee Agreement (CFA), also known as a ‘No Win No Fee’ basis. In some instances, solicitors may not be able to take on your case at all.
This is because of the financial risk imposed by the FRC to solicitors. Where there are limits on what can be recovered, it will often not reflect the work undertaken by the solicitor in the case meaning they may essentially be left at a financial loss.
It is likely that most solicitors will assess their ability to undertake claims on on a case-by-case basis.
If you have any queries regarding FRC please do not hesitate to contact our Civil Litigation department. We are happy to discuss in further detail what this means for you and your potential claim.
Prepared by Caitlin Evans