The question of whether fixed costs apply to cases allocated to the multi-track has become increasingly important following the expansion of the fixed recoverable costs regime in October 2023. While fixed costs now apply more widely than before, their application to multi-track cases remains limited and depends on the specific circumstances of the claim.

Understanding how fixed recoverable costs operate across different tracks, including the small claims track, fast track cases, and the newer intermediate track, is essential for anyone involved in civil litigation in England and Wales.

 

What Are Fixed Recoverable Costs?

Fixed recoverable costs (FRC) are a structured system that limits the amount of legal costs that the successful party can recover from the losing party. Rather than assessing costs in detail, the court applies a predetermined scale depending on the type and stage of the claim.

The aim of the fixed costs regime is to provide certainty, reduce disputes over the amount of costs, and streamline the costs recovery process in the county court.

Historically, fixed costs applied primarily to lower-value personal injury claims, particularly those involving road traffic accidents under the RTA Protocol. However, the reforms introduced in October 2023 significantly expanded their scope.

 

The Expansion of the Fixed Costs Regime (October 2023)

As of October 2023, fixed recoverable costs were extended to cover a much broader range of cases, including most civil claims valued up to £100,000.

This expansion introduced a new intermediate track, sitting between the fast track and multi-track, designed for cases that are more complex but still suitable for a streamlined costs structure.

Under Section IIIA of Part 45 of the Civil Procedure Rules, fixed costs now apply to:

• Fast track cases
• Intermediate track cases
• Certain specified types of claims, including personal injury

However, this does not automatically mean that fixed costs apply to multi-track cases.

 

Do Fixed Costs Apply to Multi-Track Cases?

In general, fixed costs do not apply to cases allocated to the multi-track.

Multi-track cases are typically higher value or more complex claims that require greater judicial management. Because of this complexity, the court usually assesses legal costs on a standard or indemnity basis rather than applying fixed recoverable costs.

This means the amount of costs is not predetermined and can vary significantly depending on the nature of the case, the conduct of the parties, and the work undertaken.

 

Exceptions: When Fixed Costs May Still Be Relevant

Although fixed costs do not usually apply to multi-track cases, there are important exceptions and edge cases to be aware of.

Claims Initially Within the Fixed Costs Regime

If a claim begins within the fixed costs regime, for example, under the RTA Protocol, but later becomes more complex and is allocated to the multi-track, there may still be arguments about how costs should be treated for earlier stages.

In some situations, fixed recoverable costs may still apply to parts of the claim, particularly where work was carried out before reallocation.

Mixed or Split Claims

Where a claim includes a claim that falls within fixed costs (such as a personal injury claim) alongside other elements that do not, the court may need to determine how costs are apportioned.

This can lead to hybrid outcomes, where some costs are fixed and others are subject to detailed assessment.

Part 36 Offers

The impact of a Part 36 offer can also affect how costs are calculated. If a party fails to beat a valid Part 36 offer, the court may depart from the usual rules and award costs on a different basis.

In multi-track cases, this can significantly influence the final amount of costs recoverable, even though fixed costs do not strictly apply.

 

Multi-Track vs Intermediate Track: Key Differences

One of the biggest sources of confusion since October 2023 is the distinction between the intermediate track and the multi-track.

The intermediate track applies to cases valued between £25,000 and £100,000 that meet certain complexity criteria. These cases are subject to fixed recoverable costs.

By contrast, multi-track cases are generally:

• Higher value (often over £100,000)
• More complex in terms of evidence or legal issues
• Requiring more extensive case management

If a case is allocated to the multi-track, it is usually because it falls outside the scope of the fixed costs regime.

 

Why Allocation Matters for Costs

Track allocation is one of the most important factors in determining how costs will be handled.

• Small claims track: Very limited or no recovery of legal costs
• Fast track cases: Fixed recoverable costs apply
• Intermediate track: Fixed recoverable costs apply under Part 45 Section IIIA
• Multi-track: Costs assessed in detail (not fixed)

This distinction can have a significant financial impact, particularly in higher-value litigation where legal costs can be substantial.

 

The Role of the Court in Costs Assessment

In multi-track cases, the court plays a central role in determining the amount of costs recoverable.

Rather than applying a fixed scale, the court will assess whether the costs incurred were:

• Reasonable
• Proportionate
• Necessary for the conduct of the case

This process, known as detailed assessment, allows for greater flexibility but also introduces uncertainty and the potential for disputes.

 

Practical Implications for Litigants

For parties involved in civil litigation, understanding whether fixed costs apply is critical when assessing risk.

In multi-track cases:

• Legal costs can be significantly higher
• Recovery is not guaranteed in full
• Disputes over costs are more likely

This makes early strategy, budgeting, and cost management essential.

Solicitors must also comply with regulatory obligations set by the Solicitors Regulation Authority, including transparency around costs and clear communication with clients.

 

How Greener Costs Can Assist

Navigating the fixed costs regime and understanding whether it applies to your case can be complex, particularly where allocation decisions and mixed claims are involved.

Greener Costs provides specialist expertise in all aspects of civil litigation costs, including fixed recoverable costs, multi-track cost assessments, and disputes arising under Part 45.

Whether you are dealing with a case allocated to the multi-track, challenging the amount of costs claimed, or seeking clarity on how the fixed costs regime applies to your matter, expert guidance can help you manage risk and achieve a fair outcome.

Support includes detailed assessment proceedings, cost budgeting advice, and strategic input on complex or high-value claims.

If you require advice on fixed recoverable costs or multi-track cost issues, contact Greener Costs today to discuss your situation.

Call: 01204 397302

Email: info@greenercosts.co.uk

 

Frequently Asked Questions

1. Do fixed recoverable costs ever apply after a case is moved to the multi-track?

In some situations, fixed recoverable costs may still apply to earlier stages of the claim if the case began within the fixed costs regime before being reallocated. However, costs incurred after allocation to the multi-track are generally assessed rather than fixed.

2. What determines whether a case is allocated to the multi-track?

The court considers factors such as the value of the claim, complexity, number of parties, and the level of evidence required. Cases that exceed the scope of the fast track or intermediate track are typically allocated to the multi-track.

3. How are legal costs calculated in multi-track cases?

Costs are assessed by the court based on reasonableness and proportionality, rather than using a fixed scale. This allows flexibility but can lead to disputes over the amount recoverable.

4. Does the October 2023 reform mean all cases now fall under fixed costs?

No, the reforms expanded the fixed costs regime significantly, but multi-track cases generally remain outside of it. Fixed recoverable costs mainly apply to fast track and intermediate track cases.

5. Can a Part 36 offer affect costs in multi-track cases?

Yes, Part 36 offers can have a significant impact on costs outcomes. Failing to beat an offer can result in adverse cost consequences, even in cases where fixed costs do not apply.