Kerry Underwood

FIGURES FOR GUIDELINE HOURLY RATES, PORTALS,FIXED RECOVERABLE COSTS, NEW COURT FEES AND FEE REMISSION

with 7 comments


All figures throughout are NET of VAT.

CURRENT GUIDELINE HOURLY RATES

The Guideline Hourly Rates for 2014 remain the same as the Guideline Hourly Rates for 2010. These rates are as follows:-

  Grade London 1       London 2    London 3    National 1   National 2  National 3  
Grade A – Solicitors or Fellow of CILEX over 8 years’ qualified experience

(my italics to emphasise the change under the Guideline Hourly Rates 2014).

 £409.00  £317.00  £229.00 – £267.00  £217.00  £201.00  £201.00
Grade B – Solicitors or Legal Executives (CILEX) over 4 years’ qualified experience  and Costs Lawyers who are suitably qualified, and subject to regulation, depending on the complexity of the work

(my italics to emphasise the change under the Guideline Hourly Rates 2014).

 £296.00  £242.00  £172.00 – £229.00  £192.00  £177.00  £177.00
Grade C – Other qualified Solicitors or Legal Executive and Costs Lawyers who are suitably qualified, and subject to regulation, depending on the complexity of the work

(my italics to emphasise the change under the Guideline Hourly Rates 2014).

 £226.00  £196.00  £165.00  £161.00  £146.00  £146.00
Grade D – Trainee Solicitors, paralegals or equivalent  £138.00  £126.00  £121.00  £118.00  £111.00  £111.00

A full list of the areas covered by the categories (London 1, London 2, London 3, National 1, National 2 and National 3) can be found here.

CURRENT PORTAL FEES

Pre 30 April 2013

From   £1,000.00 to £10,000.00 £
Stage 1 – £400.00
Stage 2 – £800.00
Total      £1,200.00

  Post 29 April 2013 The post 29 April 2013 road traffic accident fees are:-

From   £1,000.00 to £10,000.00 £
Stage 1 – £200.00
Stage 2 – £300.00
Total      £500.00

(The Civil Procedure (Amendment No. 3) Rules 2013, SI 2013 No 789 (L.7))   The post 30 July 2013 fees are:-

From   £10,000.00 to £25,000.00 £
Stage 1 – £200.00
Stage 2 – £600.00
Total      £800.00

In both portals the Stage 1 fee is payable 10 days after receiving the Stage 2 Settlement pack and the Stage 2 fee is payable 10 days after settlement is agreed.  

FROM PORTAL TO FIXED RECOVERABLE COSTS

With effect from 31 July 2013 any case, except an Industrial Disease case, exiting any portal goes in to a new Fixed Recoverable Costs scheme and those Fixed Recoverable Costs are as per the table below. Alone, industrial disease cases exiting the portal will go straight to open, standard costs and cannot be the subject of Fixed Recoverable Costs outside the portal. A pre-31 July 2013 RTA portal case that is where the CNF was issued before 31 July 2013 that exits the portal now goes to the old so-called Predictable Costs Scheme which will soon wither on the vine. Fixed recoverable costs for RTA, EL and PL claims falling out of the RTA and EL/PL protocols

Pre issue£1,000 – £5,000 Pre issue£5,001 – £10,000 Pre issue£10,001 – £25,000 Issued –Post issue Pre Allocation Issued –Post allocation Pre listing Issued –Post listing Pre trial Trial –Advocacy Fee
Case Settles before issue Case Settles before issue Case Settles before issue
Road Traffic Accident
Fixed Costs Greater of £550 or £100 + 20% of Damages £1,100+ 15% of Damages over £5k £1,930+ 10% of Damages over £10k £1,160+ 20% of Damages £1,880+ 20% of Damages £2,655+ 20% of Damages £500 (to £3,000)£710 (£3-10,000) £1,070 (£10-15,000) £1,705 (£15,000+)
Escape + 20% + 20% + 20% + 20% + 20% + 20% na
Employers Liability
Fixed Costs £950+ 17.5% of Damages £1,855+ 12.5% of Damages over £5k £2,500+ 10% of Damages over £10k £2,630+ 20% of Damages £3,350+ 25% of Damages £4,280+ 30% of Damages £500 (to £3,000)£710 (£3-10,000) £1,070 (£10-15,000) £1,705 (£15,000+)
Escape + 20% + 20% + 20% + 20% + 20% + 20% na
Public Liability
Fixed Costs £950+ 17.5% of Damages £1,855+ 10% of Damages over £5k £2,370+ 10% of Damages over £10k £2,450+ 17.5% of Damages £3,065+ 22.5% of Damages £3,790+ 27.5% of Damages £500 (to £3,000)£710 (£3-10,000) £1,070 (£10-15,000) £1,705 (£15,000+)
Escape + 20% + 20% + 20% + 20% + 20% + 20% na

NOTES

Stage 3 Hearings

In all cases in all portals, whatever the value of the claims, the Stage 3 fee is £250 for a paper hearing and £500 for an oral hearing. All fixed costs at all stages are exclusive of VAT.  

Type A, B and C fixed costs

Type A

Type A fixed costs are the legal representative’s Stage 3 costs for a paper hearing and in the Road Traffic Accident portal are £250.00 plus VAT. In the Employers Liability and Public Liability portal which came into place on 31 July 2013, Type A fixed costs are £250.00 plus VAT.   

Type B

Type B costs are additional advocate’s costs for conducting an oral Stage 3 hearing and are also £250 for Road Traffic Accident portal cases and are the same for the Employers’ Liability and Public Liability portals, giving a total fee of £500 for an oral Stage 3 hearing in all portals.  

Type C

Type C fixed costs are the costs for the advice on the amount of damages where the claimant is a child and are £150 in the Road Traffic Accident portal and are the same in the new Employers’ Liability and Public Liability portals. Note that neither of the portals applies to protected parties within the meaning of CPR 21.1(2), for example a person lacking capacity within the meaning of the Mental Capacity Act 2005 (paragraph 4.3(2) of the EL and PL portal and paragraph 4.5(2) of the new RTA portal). Although children are dealt with in CPR 21 they are not protected parties. The heading of CPR 21, and the term used throughout, is Children and Protected Parties. (My emphasis). Note also that while both the portal and the Fixed Recoverable Costs Scheme allow for an additional fee in relation to a matter involving a child there appears to be no provision for such an additional fee if the matter is settled after exiting the portal but before proceedings are issued. There appears to be nothing to stop a claimant issuing proceedings while the matter is still in one of the portals, provided that the appropriate time has expired since lodging the Claim Notification Form, which stands as the Letter of Claim. Claimants may wish to do this in children cases to avoid the lacuna whereby no additional fee is payable in a child case where the matter has exited the portal but not yet been issued.

London enhancement

The 12.5% uplift continues to apply where the claimant lives or works in certain areas of London – see below.

Road Traffic Post 30 July 2013

On 31 July 2013 the road traffic portal was extended to cover claims up to £25,000, but only where the accident occurs on or after 31 July 2013 for claims between £10,001 and £25,000. (Paragraph 1.2(1)(a) and (b) of the new RTA protocol). The trigger for road traffic accidents between £1,000 and £10,000 entering the portal is that the accident occurred between 30 April 2013 and 30 July 2013 inclusive. On 31 July 2013 the new portal was introduced covering Employers’ Liability and Public Liability claims up to £25,000.

KEY DATES: ALL PORTALS

Road Traffic £1,000 – £10,000

CNF pre 30 April 2013 = Old, higher costs
CNF 30 April 2013 onwards = New, lower costs

£10,001 – £25,000

Cause of action pre 31 July 2013 = does not enter portal
Cause of action 31 July 2013 onwards = enters new portal

Employers’ Liability and Public Liability except industrial diseases

Cause of action pre 31 July 2013 = does not enter portal
Cause of action 31 July 2013 onwards = enters new portal

 Industrial diseases

Letter of claim pre 31 July 2013 = does not enter portal
Letter of claim 31 July 2013 onwards = enters new portal

Advocacy

The advocacy fee is a fixed add-on to the fee for the stage reached. This will often be at the end of the whole process, but could be at any post-issue stage, for example a quantum hearing post allocation but pre-listing where liability is admitted. Otherwise you get what is in the box. The figures are most certainly NOT cumulative. All figures carry VAT on top.

Escape

In relation to escaping fixed fast track costs, the claimant must succeed in recovering a further 20% or more; if they fail to do so they will be liable for all of the defendant’s costs of dealing with that application. This is the same test as in relation to the existing fixed costs scheme and for all intents and purposes I expect that there will never be such an application. Remember also that even if the case is outside the portal, or is removed from the portal, and does not fall within the fixed fast track costs system any bill of costs of £75,000 or under will be subject to paper assessment and not detailed oral assessment. If the claimant fails to achieve a further 20% then the claimant receives the lower of the sum as assessed or Fixed Recoverable Costs. (CPR 45.29K as amended by The Civil Procedure (Amendment No.6) Rules 2013). No doubt there will be cases which should properly be heard in the multi track, rather than the fast track, even though valued at £25,000 or less. However if this is perceived to have been done for costs reasons then the solicitor will be hit hard, the likely outcome being that as a solicitor you will be ordered personally to pay full indemnity costs to the defendant, even when the claim has been wholly successful. Remember that personal injury cases of all kinds are subject to qualified one way costs shifting and the courts will be reluctant to move a case out of the fast track system into the multi track system when on the face of it the claimant will be at no risk of costs, and stand to gain a much higher award of costs than if the matter had remained in the fast track. On the face of it Qualified One Way Costs Shifting applies, and so unless a Part 36 offer has been made in the assessment proceedings a claimant is free to have a go without the risk of a costs penalty. Paying parties are advised always to make a Part 36 offer in such circumstances.   For full details on Guideline Hourly Rates and Portal costs, see my blogs Fixed Costs, All the Portals and Fixed Recoverable Costs Guideline Hourly Rates – CJC Costs Committee’s Recommendations Rejected

COURT FEES INCREASE: THE FIGURES

The much publicized increase in civil court fees will take place this Monday 9 March, so the last day for issuing under the old regime is tomorrow Friday 6 March.

Here is the draft Statutory Instrument which sets out the fees and has now been approved by both Houses of Parliament.

2015 No. (L. )

Senior Courts Of England And Wales

County Court, England And Wales

Family Proceedings, England And Wales

The Civil Proceedings and Family Proceedings Fees (Amendment) Order 2015

Made ***

Coming into force in accordance with article 1

The Lord Chancellor, with the consent of the Treasury, makes the following Order in exercise of the powers conferred by section 92(1) and (2) of the Courts Act 2003(1) and section 180(1) of the Anti-social Behaviour, Crime and Policing Act 2014(2).

The Lord Chancellor has had regard to the matters referred to in section 180(3) of the Anti-social Behaviour, Crime and Policing Act 2014. The Lord Chancellor has consulted in accordance with section 92(5) and (6) of the Courts Act 2003.

A draft of this Order was laid before Parliament and approved by resolution of each House of Parliament in accordance with section 180(7) of the Anti-social Behaviour, Crime and Policing Act 2014.

Citation and commencement

  1. This Order may be cited as the Civil Proceedings and Family Proceedings Fees (Amendment) Order 2015 and comes into force on 1st March 2015 or, if later, the next Monday after the day on which the Order is made.

Amendments to the Civil Proceedings Fees Order 2008

2.—(1) The Civil Proceedings Fees Order 2008(3) is amended as follows.

(2) In article 5 (remissions and part remissions), for paragraph (2)(a), substitute—

“(a) fee 1.2 if the fee relates to proceedings to recover a sum of money in cases brought by Money Claim OnLine users; or”

(3) In Schedule 1 (fees to be taken), for the column headers and for the text (in both columns) from “1. Starting proceedings (High Court and County Court)” to the end of the entry headed “Fees 1.1, 1.2 and 1.3”, substitute—

“Column 1 Number and description of fee Column 2 Amount of fee (or manner of calculation)
1 Starting proceedings (High Court and County Court)
(a) does not exceed £300; £35
(b) exceeds £300 but does not exceed £500; £50
(c) exceeds £500 but does not exceed £1,000; £70
(d) exceeds £1,000 but does not exceed £1,500; £80
(e) exceeds £1,500 but does not exceed £3,000; £115
(f) exceeds £3,000 but does not exceed £5,000; £205
(g) exceeds £5,000 but does not exceed £10,000; £455
(h) exceeds £10,000 but does not exceed £200,000; 5% of the value of the claim
(i) exceeds £200,000 or is not limited. £10,000
1.2 On starting proceedings in CCBC cases brought by Centre users or cases brought by Money Claim OnLine users, to recover a sum of money where the sum claimed:
(a) does not exceed £300; £25
(b) exceeds £300 but does not exceed £500; £35
(c) exceeds £500 but does not exceed £1,000; £60
(d) exceeds £1,000 but does not exceed £1,500; £70
(e) exceeds £1,500 but does not exceed £3,000; £105
(f) exceeds £3,000 but does not exceed £5,000; £185
(g) exceeds £5,000 but does not exceed £10,000; £410
(h) exceeds £10,000 but does not exceed £100,000. 4.5% of the value of the claim
Fee 1.1
Where the claimant does not identify the value of the claim when starting proceedings to recover a sum of money, the fee payable is the one applicable to a claim where the sum is not limited.
Fees 1.1 and 1.2.
Where the claimant is making a claim for interest on a specified sum of money, the amount on which the fee is calculated is the total amount of the claim and the interest.”

(4) In Schedule 1 (fees to be taken), for the entry in column 2 (amount of fee) corresponding to fee 2.1 (a) (case on the multi track) substitute “£1090”.

(5) In Schedule 1 (fees to be taken) for the entry in column 2 (amount of fee) corresponding to fee 2.1 (b) (case on the fast track) substitute “£545”.

Amendment to the Family Proceedings Fees Order 2008 3.—(1) The Family Proceedings Fees Order 2008(4) is amended as follows.

(2) In Schedule 1 (fees to be taken) for the entry in column 2 (amount of fee) corresponding to fee 1.2 (application for divorce etc), substitute “£410”.

EXPLANATORY NOTE

(This note is not part of the Order) This Order amends the Civil Proceedings Fees Order 2008 (S.I. 2008/1053) and the Family Proceedings Fees Order 2008 (S.I. 2008/1054).

Article 2(3) increases the fee (Fee 1.1) for starting proceedings to recover money where the sum exceeds £10,000 and alters the basis on which that fee is calculated. The fee is 5% of the amount claimed. Article 2(3) also merges two existing fees (Fees 1.2 and 1.3) which apply to starting proceedings by users of the County Court Business Centre and Money Claims Online. In those cases, the fee for starting proceedings where the sum exceeds £10,000 is 4.5% of the amount claimed.

Article 2(2) makes a minor amendment to the provision identifying exceptions from the provisions for remission to reflect the altered number of the fee for starting proceedings electronically by the Money Claims OnLine facility.

Articles 2(4) and (5) and 3 prescribe afresh, without altering the amount, three fees set before the enactment of section 180 of the Anti-social Behaviour, Crime and Sentencing Act 2014 (c. 12). Those three fees currently recover more than the costs of providing the service.

A full impact assessment accompanies this instrument.

COURT FEE REMISSIONS

The whole question of court fee remissions has just become much more important with the massive increase in court fees – effective 9 March 2015 – implemented by The Civil Proceedings and Family Proceedings Fees (Amendment) Order 2015.

To be eligible for a fee remission you must pass two tests, the disposable capital test and the gross monthly income test, and fill out Form EX160. Only the person who has to pay the court or tribunal fee can make a fee remission application. However, there are two exceptions to this rule:

• applications to the Court of Protection on behalf of ‘P’ (a ‘person’ who lacks the capacity to make decisions); or

• any person acting for or representing a child involved in legal action.

In the case of a litigation friend, they may sign Form EX160 on behalf of the claimant but the application must be made in the name of, and for the benefit of, the claimant, not the litigation friend.

Disposable capital test

The disposable capital test:

Court or tribunal fee Disposable capital threshold
Your court or tribunal fee is: You, and your partner’s disposable capital is less than:
Up to £1,000 £3,000
£1,001-£1,335 £4,000
£1,336-£1,665 £5,000
£1,666-£2,000 £6,000
£2,001-£2,330 £7,000
£2,331-£4,000 £8,000
£4,001-£5,000 £10,000
£5,001-£6,000 £12,000
£6,001-£7,000 £14,000
£7,001 or more £16,000

For people 61 years or older there is a single disposable capital limit of £16,000, regardless of the amount of the court fee.

Gross monthly income test

The gross monthly income test:

Remission 1: You will receive a full fee remission if you are in receipt of one of the means-tested benefits listed below:

• Income-based Jobseeker’s Allowance.

• Income-related Employment and Support Allowance.

• Income Support.

• Universal Credit with gross annual earnings of less than £6,000.

• State Pension Credit guarantee credit.

The court or tribunal will need to see original and official evidence that you are in receipt of one of these benefits.

Remission 2: If you and (if applicable) your partner’s gross monthly income is below these thresholds then you will receive a full fee remission:

Gross monthly income cap thresholds – full remissions
Gross monthly income with: Single Couple
No children £1,085 £1,245
One child £1,330 £1,490
Two children £1,575 £1,735
£245 for each additional child

If your gross monthly income exceeds the above figures you may still receive a partial fee remission. For every £10 of income you have over the threshold set out in the above table, you will be required to pay £5 towards your court or tribunal fee. The court or tribunal will calculate whether you are required to pay a contribution towards the fee – known as a partial remission.

If your gross monthly income is over the below figures, or your expected contribution is higher than the fee required, you will not be eligible for a fee remission:

Gross monthly income cap thresholds – partial remissions
Gross monthly income with: Single Couple
No children £5,085 £5,245
One child £5,330 £5,490
Two children £5,575 £5,735
£245 for each additional child

Employment tribunals

In Dozie v Addison Lee plc (2013) UKEAT/0328/13, [2013] ICR D38, [2013] All ER (D) 172 (Sep), the EAT held that it can hear an appeal without a fee being paid or a fee remission granted as an appeal is properly instituted at the point it is presented. Although this was an urgent appeal, the logic is that the EAT is free to hear a non-urgent appeal in such circumstances.

Given that a claimant appellant will have forked out £1,200 to have the employment tribunal claim heard and £400 for the initial EAT sift, that is £1,600 before the appeal is even listed, the EAT may become a bit charitable about the payment of a further £1,200 for the appeal hearing. After all, it is hard to see the EAT surviving on the small number of appeals that it will be receiving.

This particular reform is very significant as it has proved what many of us were saying, that the Jackson reforms are about attacking access to justice and removing the ability of ordinary people to resolve disputes in the courts, rather than any grand scheme to improve the court and tribunal system.

This has been confirmed by the massive increase – over 600% in some cases – in court issue fees which come in to place on 9 March 2015.

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Written by kerryunderwood

February 12, 2015 at 11:17 am

Posted in Uncategorized

7 Responses

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  1. You haven’t mentioned Costs Lawyers also added in October?

    Sent from my iPhone

    Brian Varney Costs Lawyer,ACILEx. Supreme Costing Services (In association with Capital Legal Services and Hickmans Legal Costing Services Ltd) 10, Sherwood Close Ashford Kent TN24 9PT tel. 01233 650717 mobile 07770 661669 email bavarney1@yahoo.co.uk DX 30201 Ashford (Kent)

    >

    Brian Varney

    February 12, 2015 at 4:15 pm

  2. […] Kerry Underwood on Guideline Hourly Rates, Portal Fees and Fixed Recoverable costs: the figures […]

  3. Hi Kerry,

    I have an RTA which has been issued part7 against the defendant. The claim was submitted to the defendants insurer showing in the MiD search. I have now been contacted by another insurer who state the vehicle was hired to them and they insured the vehicle at the time. They want us to discontinue the claim against the current defendant and they want us to resubmit the claim via the portal to them now. Is there any way I can claim the wasted costs from the defendant ? Or perhaps add the new insurers as a second defendant into proceedings ?

    Ati

    February 21, 2017 at 8:16 pm

    • Hi Ati
      In Nicole Chapman v Tameside Hospital NHS Foundation Trust, Bolton County Court, 15 June 2016, Case number B74YM281

      the defendant was ordered to pay all of the claimant’s costs where the claimant discontinued shortly before trial following disclosure by the defendant of documents which it should have disclosed during the portal process.
      The defendant denied liability and stated that it had no documents to disclose.

      Proceedings were issued. The defendant then disclosed documents showing that it had a reasonable cleaning and inspection system.

      The claimant discontinued.

      The claimant was awarded fixed costs up to the post-listing, pre-trial stage less the fixed recoverable costs sum applicable had the matter settled pre-issue.
      The Pre-Action Protocol for Personal Injury Claims provides that:-

      “The Defendant should also enclose with the response, documents in their possession which are material to the issues between the parties, and which would be likely to be ordered to be disclosed by the court, either on an application for pre-action disclosure, or on disclosure during proceedings.”
      CPR 44.2(1) provides:-
      “(1) The court has a discretion as to –
      • whether costs are payable by one party to another;

      • the amount of those costs; and

      • when they are to be paid.”

      CPR 44.2(4) states:-
      “(4) In deciding what order (if any) to make about costs, the court will have regard to all the circumstances, including –
      • the conduct of all the parties;”

      CPR 44.2(5) says:-
      “(5) The conduct of the parties includes –
      • conduct before, as well as during, the proceedings and in particular the extent to which the parties followed the Practice Direction – Pre-Action Conduct or any relevant pre-action protocol;

      • whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue;

      • the manner in which a party has pursued or defended its case or a particular allegation or issue; and

      • whether a claimant who has succeeded in the claim, in whole or in part, exaggerated its claim.

      The court awarded costs on the basis of the stage costs of £3,790.00 without the added 20% of damages as no damages were recovered.

      It then set-off the portal costs of £950.00 which the claimant would have incurred anyway, representing the point where the matter would have been stopped had the NHSLA disclosed its evidence when it should have done so.
      Consequently the defendant was ordered to pay the claimant £2,840.00 plus VAT and disbursements.

      The Pre-Action Protocol for Personal Injury Claims provides states that the defendant should enclose with the response documents in their possession which are material to the issues between the parties and likely to be ordered to be disclosed by court on an application for pre-action disclosure or on disclosure during proceedings.

      The facts of this case are different but the principle is the same, the first defendant should have disclosed to you that there was another insurer who had the vehicle hired to them and therefore the second insurer was insuring the vehicle instead of themselves.

      The court has the discretion to award the costs, state how much is payable and also when the costs should be paid, as shown above in CPR 44.2 (1).

      You can then submit a new claim on the portal against the second defendant or indeed add the new defendant.

      Are you in fact adding a new defendant, or is it merely a different insurer?

      Kerry

      kerryunderwood

      March 13, 2017 at 1:16 pm


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