Fixed recoverable costs – what does it mean for you?

Due to reforms in the legal system, the way a lawyer’s costs are recovered has changed. In cases with a value up to £100,000, the amount of costs that can be recovered from the other side in a legal matter may be capped. This cap may apply even if the case is complex and takes longer than expected, meaning that the costs recovered may not reflect the amount of work which needs to be undertaken

While this new system of fixed recoverable costs was formally announced in October 2023, it’s only now, two years on, that we are fully understanding its implications.

The introduction of fixed recoverable costs for claims valued up to £100,000 means that more claims for personal injury and clinical negligence will be impacted.

This should not cause undue worry, and certainly should not put you off seeking the justice you deserve, but it is important for people to be aware of the fact fixed recoverable costs may now apply to their claim.

It’s more important than ever before that claims are handled efficiently, and clients can help to keep costs incurred in their claim to a minimum by supporting their legal team in gathering the evidence that can enable the claim to progress to a successful conclusion.

We would advise anyone thinking of making a claim to:

• Act quickly. By seeking legal advice at the earliest stage, it can be established whether a case falls under the new rules
• Gather medical evidence at the first opportunity. This can include medical records (we can request these for you, or you can do so yourself), but notes of conversations with clinicians or hospital letters can also be vital
• Keep records of financial losses. Receipts and invoices for any expenses linked to your claim will also be important evidence at a later stage
• Organise your records in an efficient way. Keeping all paperwork or records in one folder (digital or hard copy) can be very useful