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The 65th Update to the CPR, which comes into force on 31 July 2013, extends the Low Value Personal Injury Scheme for Road Traffic Accidents to include claims valued at £10,000 to £25,000. In addition, most personal injury claims with a value of £1,000 to £25,000, as defined in the revised Pre-Action Protocol for Low Value Personal Injury (Employers' Liability and Public Liability) Claims, will come within the scheme. Claims which exit the protocol schemes and either settle or proceed to issue of a claim and judgment will be subject to a fixed cost regime.
Offers to settle and payments into court - Part 36 and PD36
New rules 36.10A to 36.14 make provision in respect of the fixed costs a claimant may recover where the claimant either accepts or fails to beat a defendant's offer to settle CPR 36. Provision is also made with regard to defendants' costs in those circumstances. If a defendant refuses a claimant's offer to settle and the court subsequently awards the claimant damages which are greater than or equal to the sum they were prepared to accept in settlement, the claimant will not be limited to receiving fixed costs, but will be entitled to costs assessed on the indemnity basis in accordance with rule 36.14. Provision is also made both in respect of defendants' costs where a defendant successfully counterclaims and the costs recoverable by both parties in related interim applications.
Fixed Costs - Part 45 and PD45
A new Section IIIA is inserted into Part 45, which provides for a fixed costs regime in respect of those claims which exit the RTA and Employers' Liability/Public Liability Protocols and which are subsequently settled or proceed to judgment. The costs which might be recovered in such cases are prescribed in the rules.
Section IIIA also provides that where a costs order is made in favour of a defendant, the amount recoverable should not exceed the amount of costs which the claimant would have been able to recover at the same stage of the proceedings had a costs order been made in favour of the claimant, subject to two exceptions:
(1) where a claim is struck out or found to be fundamentally dishonest and the claimant loses their protection under the qualified one way cost shifting (QOCS) provisions in CPR 44, the court may assess the defendant's costs without reference to the costs which would have been recoverable by the claimant; and
(2) this rule will not apply where the court makes an order for costs under new rules 36.10A or 36.14 (Costs consequences of acceptance of a Part 36 offer where Section IIIA applies).
Amendments to Parts 36 and 45 apply only to claims started under the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents where the Claim Notification Form is sent in accordance with that Protocol on or after 31 July 2013. The Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents which was in force before 31 July 2013 shall continue to have effect in respect of any claim where the Claim Notification Form was sent before that date.
Consequential amendments are made to:
For a full analysis of the Civil Procedure Rules see Civil Court Service (the Brown Book).
View the document at http://www.legislation.gov.uk/uksi/2013/1695/contents/made - UK SI 2013/1695, or click on the pdf download below.