COSTS UPDATE - Court Fees

The 45th update to the Civil Procedure Rules introduces changes in a large number of areas.

In relation to costs, the following amendments apply with effect from the 1st October 2007.

Part 46  is amended to increase the amount of costs which the Court may award as the costs of an Advocate for preparing for and appearing at the trial of a claim in the fast track for trials commencing on, or after 1st October 2007.

Part 47 is amended to increase the time within which an Appeal decision of an authorised Court Officer relating to Detailed Assessment of Costs may be filed from 14 to 21 days.

The Assessment of Costs and particularly proceeding to a Detailed Assessment Hearing is already an expensive matter and in light of recent amendments to the fee structure, potentially the costs of proceeding to a Detailed Assessment has become even more expensive. The following sets out the new fees applicable from 1st October 2007.

Rule 5.2 'On the filing of a Request for Detailed Assessment in any case where 5.1 does not apply (5.1 relates to LSC Funded Cases only), or on the filing of a request for a Hearing date for the assessment of costs payable to a Solicitor by his Client pursuant to an Order under Part III of the Solicitors Act 1974'.

Where the amount of costs to be assessed: -

	Fee Payable
5.2(a) does not exceed 15,000	300
5.2(b) exceeds 15,000 but does not exceed 50,000	600
5.2(c) exceeds 50,000 but does not exceed 100,000	900
5.2(d) exceeds 100,000 but does not exceed 150,000	1,200
5.2(e) exceeds 150,000 but does not exceed 200,000	1,500
5.2(f) exceeds 200,000 but does not exceed 250,000	2,250
5.2(g) exceeds 300,000 but does not exceed 500,000	3,750
5.2(h) exceeds 500,000	5,000

It is my view that both parties should think carefully before Requesting a Detailed Assessment Hearing.

In the case of Paying Parties, clearly they should take into consideration the new fee structure when considering the commercial aspects of proceeding to a Detailed Assessment Hearing and the potentially heavy cost involved if unsuccessful.

In relation to Receiving Parties, this charge is likely to be viewed as a further financial burden. It is hoped that Receiving Parties will not prematurely apply for a Detailed Assessment and explore negotiations fully before taking the step of requesting a Detailed Assessment Hearing.

On a personal note, I feel the Court may well feel and hope that the increase in fees deters Parties from proceeding to a Detailed Assessment Hearing.

 

Geoff Farmer (FALCD)