Lord Justice Jackson’s proposal for fixed recoverable costs

Lord Justice Jackson’s report on fixed recoverable costs has been published this week. The key recommendation of the report was to introduce a new intermediate track for claims between £25,000 and £100,000. The track would have streamlined procedures and be subject to a grid of fixed recoverable costs.

The total costs that would be recoverable under the new regime would range from £19,150 for a £30,000 claim in Band 1 to £68,450 for a £100,000 claim in Band 4. It is proposed cases of up to £100,000 that are only of “modest complexity” should fall within the new scheme. It would mainly apply to claims for monetary relief, such as damages or debt, but would also include cases where declarations are sought to support claims for monetary relief.

The anticipated benefits of the new track are to reduce overall costs, eliminate the costs of budgeting or assessing the costs of such cases, and to create a clear and transparent costs structure for parties. Lord Justice Jackson said the new “intermediate track” would not be “appropriate for every case”, and the courts would only assign cases which were suitable, but he believed the inclusion of a new track “will make a real contribution to access to justice”.

For further information, please contact the Real Estate Disputes Team at Hamlins.