CPR Updates for October 2024

Back in May we reported on the CPRC open meeting and the likelihood that the lower value clinical negligence fixed costs rules would not be ready for October 2024 implementation. The rules needed to be signed off at the June 2024 meeting and the subsequent minutes showed that this had, indeed, not been the case.

The meeting also covered the proposals to bring in a new fixed costs determination process. Those rules had been discussed at the April meeting and were on track to make it into the October changes.

We have now had sight of the statutory instrument which was laid before Parliament on 30 July 2024. There is, as expected, no mention of lower value clinical negligence matters so it is fairly safe to say we won’t be seeing those changes this year.

What we do have is the detail on fixed costs determination as well as some additions on the promotion of ADR.

ADR

Provisions regarding ADR have been added to the overriding objective, Part 28 and 29 in respect of directions, and Part 44 in respect of costs. There is reference to the Court ordering as well as simply encouraging ADR and the Court will be able to take failure to engage in ADR into account as a conduct point when using it’s discretion in respect of costs.

Fixed Costs Determination

The new Fixed Costs Determination process is set out in the amendments to CPR 45 in a new Section X. The process appears to be similar to, but a simplified version of, provisional assessment.

In short, on fixed costs matters, the costs will now be detailed in a new form, Precedent U, and will be summarily determined by the Court at the hearing where the costs order is made. Where that is not possible, the Court may direct that the costs will be determined with or without a hearing.

Where all matters, save for costs, are agreed without a hearing, an application will be made for a determination. On non-litigated matters, costs only proceedings will be commenced together with a Precedent U. In either case, the paying party will respond within 21 days and the Court will determine the costs without a hearing by annotating the decisions on the Precedent U. Costs of the process will be £500 plus VAT as set out in a new table 17 (plus court fee).

There will then be an opportunity to challenge any decisions in the determination by requesting a hearing. Costs of the hearing will be paid by the requesting party unless they achieve an adjustment in their favour of at least 20%. Those costs will be treated as an interim application (£250-£333).

Other points of note

In addition, the rules have been tidied up in respect of VAT being payable on fixed costs. It has also been specified that where preliminary issue costs cannot yet be determined (because the final damages are unknown), the Court will be able to order a payment on account.

If you have any questions regarding this summary please contact Helen Spalding here.