Each May, the Civil Procedure Rules Committee (CPRC) holds an open meeting via Teams. Whilst it’s always good to keep an eye on the monthly minutes for any upcoming changes, the annual open meeting is a great opportunity to gain a real insight into how the committee works as well as providing a forum for questions.
This year the hot costs topics are much the same as last year with an update on fixed recoverable costs and questions on the position regarding clinical negligence claims featuring in the meeting yet again. Several other costs issues were covered in the questions forum including clarifications sought on the simplified budgeting pilot and breakdowns of medical agency fees.
The key take aways were as follows :
Fixed Recoverable Costs Update
The MOJ are conducting a ‘stock take’, due in October 2025, to see how the FRC regime is operating ahead of the full review in 2026. They are looking at how the complexity banding is working, the interplay with Part 36 and whether the 35% uplift assists, as well as the ‘unreasonable behaviour’ and ‘exceptional circumstances’ definitions (for the 50% uplift and escaping fixed costs). They will also be reviewing the exemptions in place, particularly in respect of housing claims. The housing exemption was anticipated to end around now but continues until the result of the stock take for now. There will be a full call for evidence in the autumn.
Clinical Negligence Fixed Recoverable Costs
At last year’s meeting, we were told that the plan was for final sign off to be made at the next meeting in June 2024 and that drafts would then be published as soon as practicable. Various issues with the drafting, combined with the subsequent general election in July 2024, pushed matters back and it became clear that we wouldn’t see these rules until April 2025 at the earliest. As April has now come and gone, an update was sought on the issue in the questions forum. The answer was simply that the government is currently considering the issue and the CPRC are anticipating a decision in due course.
Assessment of Medical Agency Fees
A question was posed as to whether the CPRC had any desire to address the ongoing issue in respect of breakdowns of agency fees given the inconsistent decisions from the County Courts. It was confirmed that the MOJ don’t have a set policy on the issue. It was suggested that a cross industry agreement could be reached to bring an end to current litigation on the issue.
Default Costs Certificate
The fixed costs for obtaining a DCC remain at £80 plus vat whilst the Court fee has now increased to £80. It was confirmed that the fixed sum would be reviewed when the FRC tables are reviewed next year.
Costs Budgeting Pilot
Two questions were raised in respect of the pilot. Firstly, in respect of the removal of hourly rates from the form and whether this was intended to remove the temptation to address rates at the CCMC. It was confirmed that although Precedent Z makes no express reference to rates on the front sheet, neither does the Precedent H front sheet. The new form does mention rates on Page 2. There is no intention to change the proper approach to rates at the budgeting stage. Secondly, it was asked whether the inclusion of the claim value on the form was to assist the Court in respect of proportionality and whether the intention was to place more emphasis on the sums in issue over the other proportionality factors. It was confirmed that the reference to value was for practical reasons as different provisions apply in some of the pilots for different values and it will inform how the Court will go on to deal with budgeting. It was not intended to promote the claim value over any other proportionality factor.
If you have any questions regarding this summary please contact Helen Spalding here.
