In the UK civil justice system, the recoverability of legal costs largely depends on the track to which a case is allocated.
Following reforms effective from October 2023, four tracks now govern cost recovery: Small Claims, Fast Track, and the newly introduced Intermediate Track, alongside the existing Multi-Track.
- Small Claims Track (typically for claims under £10,000): Costs are generally not recoverable, except for limited fixed costs such as court fees and witness expenses. This track is designed to be accessible and low-cost. Expert evidence is permitted in the Small Claims track but will often have less scope than in the other tracks.
- Fast Track (claims up to £25,000): Fixed Recoverable Costs (FRC) apply. Cases are categorised into four complexity bands, each with a predefined grid of recoverable costs for different litigation stages. This ensures predictability and proportionality in cost awards. The fast track is suitable for matters which may be higher in value, but there is little dispute as to facts or matters of law.
- Intermediate Track (claims between £25,000 and £100,000): Introduced to bridge the gap between Fast and Multi-Tracks, it also uses FRC with four complexity bands. It suits moderately complex cases that can be tried within three days and typically involve expert evidence, and are more complex than matters in the fast track.
- Multi-Track (claims over £100,000 or of high complexity): Costs are not fixed and are subject to detailed assessment or costs budgeting. This track allows for greater flexibility but also introduces uncertainty and potential for higher cost exposure.
Which track is the best?
There is no concrete answer, as it all depends on the nature and value of the dispute, and how much risk you are willing to take.
Small claims are ideal for straightforward, low-value disputes where parties want a quick, low-cost resolution. However, limited cost recovery may deter legal representation.
On the flipside – the lack of costs recovery may encourage people to make such a claim and represent themselves.
Fast track offers a balance between cost control and legal complexity, with predictable recoverable costs. It’s suitable for moderately complex cases but may feel restrictive for more nuanced disputes.
The fixed costs recovery gives the parties a little more certainty in the proceedings, and can instruct legal representatives accordingly.
Intermediate track provides more flexibility than fast Track while maintaining cost certainty. It’s a good fit for mid-value claims but still limits recoverable costs, expanding upon the fixed costs available in the fast track.
Multi-track is best for high-value or complex cases needing bespoke procedures. However, it carries the highest cost risk and uncertainty. Whilst cases will ordinarily be “budgeted”, this may not happen until several months into the proceedings, and with no limit (in the same sense as the fast and intermediate track), parties will be cautious as to the costs they are incurring.
At Dyne Solicitors we specialise in Commercial Disputes. We offer advice and representation for regulatory, commercial and property litigation in the environmental and waste sectors. For more information, please contact Alex Sandland or Patrik Jones-Wright.