What Are Fixed Recoverable Costs

Fixed Recoverable Costs (FRC) refer to a set amount of legal costs payable by the losing party to the winning party in certain categories of civil litigation.

Under the fixed recoverable costs (FRC) regime, the Court awards a prescribed amount of legal costs rather than assessing costs on the standard or indemnity basis. In some circumstances, an additional amount equivalent to 50% of certain fixed costs may be recoverable, for example, following late acceptance of a Part 36 offer.

The FRC regime forms part of the wider costs regime introduced to promote certainty, proportionality and consistency in civil litigation. The relevant provisions are contained within Part 45 of the Civil Procedure Rules. The purpose of the regime is to reduce disputes about the overall amount of legal costs and provide greater predictability for both parties at an early stage.

October 2023 Changes to the FRC Regime

From October 2023, the scope of FRC was significantly extended.

Previously, FRC primarily applied to lower-value personal injury claims commenced through the MOJ Portal and allocated to the Fast Track. Since October 2023, the regime now applies to a broader range of civil litigation matters valued up to £100,000.

Less complex claims are allocated to either:

• The Fast Track
• The Intermediate Track

The Intermediate Track applies to cases valued up to £100,000 where trials are expected to last no more than three days and involve limited expert evidence. This track was introduced to bridge the gap between straightforward Fast Track claims and more complex multi-track litigation.

Cases within these tracks are placed into defined complexity bands, which determine the level of fixed costs recoverable depending on the type of claim and procedural stage. Band allocation can have a significant impact on the overall amount of legal costs recoverable.

More complex claims valued above £100,000 will generally be allocated to the multi-track, where standard costs principles continue to apply.

Types of Claims Covered

FRC applies to many negligence claims, particularly personal injury claims involving employers’ liability, public liability and road traffic accidents.

The extension also captures certain disease claims, subject to allocation and complexity banding. Allocation will depend on factors such as evidential requirements, expert involvement and anticipated trial length.

At present, clinical negligence is largely excluded from the extended regime, although consultation proposals have considered its future inclusion within a structured fixed costs framework.

How Fixed Recoverable Costs Are Calculated

Unlike traditional assessment, where the Court considers reasonableness and proportionality, FRC provide a structured table-based approach.

The amount of legal costs recoverable depends on:

• The track (Fast Track or Intermediate Track)
• The relevant complexity bands
• The stage at which the matter settles or proceeds to trial

This staged structure ensures that the winning party recovers a predictable set amount, while also providing clarity to the losing party as to potential exposure. It reduced the need for detailed line-by-line assessment in many cases.

Fixed Recoverable Costs Disputes

Disputes frequently arise concerning:

• Allocation to the correct track
• Placement within the appropriate complexity bands
• Entitlement to the amount equivalent to 50
• Removal from the portal
• Late acceptance of Part 36 offers

Such disputes may proceed to detailed assessment or be resolved through negotiation or alternative dispute resolution, depending on the circumstances.

Greener Costs has extensive experience advising on disputes arising under the FRC regime, acting for both paying and receiving parties in contested matters and helping clients navigate procedural and strategic issues.

Frequently Asked Questions – Fixed Recoverable Costs

What is the purpose of FRC?

Fixed recoverable costs were introduced to provide certainty in civil litigation by setting a predetermined amount of legal costs recoverable in certain cases. Instead of assessing costs in detail, the Court applies a structured figure based on track and complexity band, promoting proportionality and reducing disputes.

When do fixed recoverable costs apply?

FRC apply to many civil litigation claims valued up to £100,000 that are allocated to the Fast Track or Intermediate Track. Since October 2023, the regime covers a wider range of negligence claims beyond traditional personal injury matters.

What are complexity bands in FRC?

Complexity bands are categories within the Fast Track and Intermediate Track that determine the level of fixed costs recoverable. The band assigned reflects the nature, evidential requirements, and overall complexity of the claim.

Can fixed recoverable costs be a challenge?

Yes. Although the regime sets fixed figures, disputes can arise regarding track allocation, complexity band placement, or entitlement to uplifts such as the amount equivalent to 50% following late acceptance of a Part 36 offer. These issues may be resolved by agreement, dispute resolution, or Court determination.

Is it applicable to clinical negligence claims?

Most clinical negligence claims currently fall outside the extended FRC regime. However, proposals have previously considered introducing fixed costs for lower-value clinical negligence matters, so the position may evolve.

Does early settlement affect the amount recoverable?

Yes, the FRC regime operates on a staged basis, meaning the amount of legal costs recoverable depends on when the case settles. Earlier resolution generally results in lower fixed costs, while settlement close to trial attracts higher prescribed amounts.

Our Assistance with Fixed Costs Disputes

We provide strategic advice and representation in any dispute concerning fixed recoverable costs. Our services include:

• Advising on allocation and complexity band disputes
• Drafting and reviewing bills where necessary
• Preparing Points of Dispute and Replies
• Representing clients at provisional or oral hearings

If you are dealing with a fixed recoverable costs dispute and would like clear, practical guidance from an experienced team, we are here to help. Contact Greener Costs today via info@greenercosts.co.uk for a free, no-obligation discussion to see how we can support you in achieving a fair and commercially sensible outcome.