Personal injury costs.

The starting point under CPR 44.2 is that the unsuccessful party pays the successful party’s costs, but personal injury has important modifications. Qualified one-way costs shifting generally protects claimants from paying a defendant’s costs if the claim fails, subject to exceptions such as fundamental dishonesty and the ability to enforce against damages and interest in some circumstances.

Funding also matters. Since April 2013, success fees under conditional fee agreements and most after-the-event insurance premiums have not generally been recoverable from the opponent in personal injury claims. The deductions from a client’s damages, the retainer terms and any solicitor-client costs issues therefore need careful handling.

Many lower-value injury claims are governed by fixed recoverable costs under CPR Part 45. The regime was extended from October 2023 to most fast track claims and to the new intermediate track for claims up to £100,000, with costs fixed by complexity band and stage reached.

Getting the band, stage, disbursements and any escape argument right can make a meaningful difference across a caseload. We review fixed costs calculations, advise where a claim may justify a departure and identify when a matter properly falls outside the scheme altogether.

Higher-value injury claims allocated to the multi-track will often be subject to costs management. A Precedent H budget for a serious injury case has to anticipate expert disciplines, schedules and counter-schedules, periodical payment arguments and a realistic trial estimate.

We prepare and review budgets with the conducting solicitor, help with budget discussion reports and advise on revisions when the medical picture changes significantly. That work pays dividends later, when budgeted phases are compared with the costs claimed.

When a claim settles, the receiving party usually needs a Bill of Costs that reflects years of work across liability, causation and quantum. We draft electronic and traditional Bills, prepare offers and negotiate with insurers and their costs representatives.

For paying parties, we prepare targeted Points of Dispute dealing with hourly rates, grade of fee earner, expert fees, duplication and proportionality. Where agreement is not possible, matters proceed to detailed assessment and, if needed, a hearing.

Part 36 offers carry particular weight in injury claims. A claimant who beats their own offer at trial may recover enhanced interest, indemnity costs and an additional amount, while a claimant who fails to beat a defendant’s offer usually faces adverse costs from the end of the relevant period.

We help teams calculate those consequences accurately, including the interaction with qualified one-way costs shifting and fixed costs, so that settlement decisions are made with a clear view of the costs at stake.