Legal Cost Specialists

Fixed costs uncertainty

I previously mentioned that the conflict in decisions as to whether fixed costs apply where costs are payable on the indemnity basis, when a claimant succeeds on a Part 36 offer, was due to be resolved by the Court of Appeal in February.

Kerry Underwood’s blog now reports that this case has settled. We are therefore left in the dark as to when fixed costs do or do not apply.

Hopefully this is a matter the rules committee will address as a matter of urgency. Given the benefit of certainty and the avoidance of further satellite litigation are lost if fixed costs do not apply, surely the answer would be to continue to apply fixed costs but with an uplift, say 10%, on the amount. This leaves all the benefits of fixed costs but with a costs incentive retained to the claimant to make a good Part 36.

3 thoughts on “Fixed costs uncertainty”

  1. The CA has inserted two other cases on the Pt 36/indemnity costs point in place of Butler; still to be heard on 08/02/16

  2. Cash in while you can.

    Remember we (cost draftsman, CLowns, etc) are all entitled to recover £111.00 as a minimum for drafting/negotiation, please do not accept low fixed fees from clients.

    We still have at least 12-24 months left in this business.

  3. Pingback: Jackson fixed fee extension proposals | Legal Costs Blog

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