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If you are successful in your claim, you can recover a contribution towards your legal fees from your opponent. The amount of legal fees you can recover is determined by the Court Rules and depends on what pathway (track) within the Court your claim falls into and the stage at which your claim settles.
There are four tracks of the Court your claim could fall into. Examples of the type of case that fall into each track are given below:
- Small Claims Track: for cases with a value of under £10,000.00 unless the claim relates to personal injury or clinical negligence.
- Fast Track: a claim for money more than £10,000.00 but less than £25,000.00 or personal injury or clinical negligence cases with a value up to £25,000.00.
- Intermediate Track: a claim for money more than £25,000.00 but less than £100,000.00, certain clinical negligence cases under £25,000.00, or where there are multiple Claimants or Defendants to a claim.
- Multi Track: a claim for money more than £100,000.00.
What costs can I recover in the Small Claims Track?
In this track of the Court, you are not able to recover any costs from your opponent even if you win your claim. If you lose your claim, your opponent cannot recover any legal costs from you.
You and your opponent will each have to pay your own legal costs.
What costs can I recover in the Fast Track?
The Fast Track is divided into four different complexity bands. What band your claim falls into, the stage at which it settles and the amount it settles for, will determine the amount of costs you can recover from your opponent.
If you lose your claim, you are likely to be ordered to pay a contribution towards your opponent’s costs of defending the claim. The amount you would be ordered to pay your opponent would be the same amount your opponent would be ordered to pay you, if you had been successful. The amount will be calculated based on the complexity band your claim falls into and the stage at which it settles.
The example below shows the costs that would be recoverable if a claim were to settle for the sum of £10,000.00 at different stages and complexity bands.
The amount of costs recoverable range from £0.00 in a complexity band 1 claim settling before Court proceedings are started to £16,568.40 including VAT and representation at trial, in a complexity band 4 claim settling at trial.
What costs can I recover in the Intermediate Track?
The Intermediate Track is also divided into four different complexity bands. What band your claim falls into and the stage at which it settles will determine the amount of costs you can recover from your opponent.
If you lose your claim, you are likely to be ordered to pay a contribution towards your opponent’s costs of defending the claim. The amount you would be ordered to pay your opponent would be the same amount your opponent would be ordered to pay you, if you had been successful. The amount will be calculated based on the complexity band your claim falls into and the stage at which it settles.
The amount of costs recoverable ranges from £2,280.00 including VAT in a complexity band 1 claim settling before Court proceedings are started to £45,751.20 including VAT and representation at a 1 day trial, in a complexity band 4 claim settling at trial.
What costs can I recover in the Multi Track?
There are no complexity bands in the Multi Track. If you win your claim, the legal costs you have incurred will be put to your opponent. If your opponent does not agree to the amount of costs you are claiming, negotiations will take place to try and agree the costs you should be paid.
If an agreement cannot be reached, the Court can be asked to assess your costs and make an Order confirming how much your opponent must pay towards your costs.
If you lose your claim, you will be ordered to pay some of your opponents’ costs. Your opponent will put their costs to you and, if you do not agree the amount of costs your opponent is claiming, you try to negotiate a lower sum to pay them. If you cannot reach an agreement with your opponent, the Court can be asked to assess your opponents’ costs and make an Order confirming the amount you have to pay towards your opponent’s costs.
Why has the Court restricted what costs I can recover?
The reason the Court has imposed rules about how much a losing party must pay a winning party towards their costs is to promote access to justice. Limiting the contribution towards costs payable by the loser, enables claims to be defended by individuals with limited means. It also encourages parties to take all reasonable steps to settle their dispute at each stage of the claim process.
To receive more information about the tracks of the Court and what costs are recoverable for your your claim please contact our Dispute Resolution Team on 02392 820 747. or 01329 822 333
This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances.
