"What is perhaps most interesting is that the indemnity principle, so long the golden rule of costs recovery, will cease to apply to matters allocated to the intermediate track. This represents a significant (if not unprecedented) change in approach to the principles of costs recovery. Fixed costs are not new, but the scale at which they will be implemented with the latest reforms is significant."
In the Solicitors Journal, dispute resolution partner Elliot Elsey examines the significant changes to the costs regime in litigation proposed by the Civil Procedure (Amendment No.2) Rules 2023 and accompanying 156th update of the Practice Directions on 1 October 2023. The reforms will create a fourth litigation track, the 'intermediate track' for claims worth between £25,000 and £100,000, and seeks to strike a balance between cost certainty and the reasonable recovery of costs.
The full article is available to read in the Solicitors Journal online.
Elliot is a partner in the dispute resolution team. He advises on a broad range of disputes involving individuals, charities, and businesses across a large number of sectors, including digital marketing, retail, property development and other legal professionals