Our website is set to allow the use of cookies. For more information and to change settings click here. If you are happy with cookies please click "Continue" or simply continue browsing. Continue.

  • APIL Guide to Costs and Funding

APIL Guide to Costs and Funding


Provides a practical overview of the changes to costs and funding

Paperback i

Book printed softcover

Costs and funding in personal injury cases have undergone dramatic change since the implementation of the Jackson Reforms which abolished the recoverability of ATE and BTE insurance premiums, capped solicitors success fees at 25%, and introduced QOCS, DBAs/contingency fees and fixed recoverable costs.

PI lawyers also faced changes including the extension of portals to cover EL/PL cases.

The purpose of this new Guide is to provide a practical overview of the changes, explaining what impact they will have in practice, together with guidance on how to adopt successful and profitable working methods to thrive in the new regime, as well as ensure work started under the old regime complies with the changes.

Who is the guide targeted to?
 Personal injury lawyers at all levels
 Insurance firms involved in personal injury

10% discount for APIL Members, to take advantage of this offer please call Customer Services on +44 (0)330 161 1234.
  • Code of Conduct and Funding options
  • CFAs
  • DBAs
  • Adverse Costs
  • Pre-action Costs
  • Fixed recoverable costs in the fast track
  • Costs orders
  • Part 36 and Offers to Settle
  • Trial
  • Detailed Assessment
"A helpful guide for PI practitioners to the new legal framework pertaining to costs and funding...this is one of the most helpful books for PI practitioners to make its appearance in recent years...the guide offers timely advice for the busy practitioner on how to adapt to the new regime and thrive successfully within it...Experienced and inexperienced lawyers alike will certainly benefit from adding this comprehensive and authoritative text to their professional libraries"
Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers
Read the full review click here
Listen to the full review click here 

The introduction of the QOCS regime in April 2013 did not change a claimant’s potential liability towards a defendant in respect of costs where the claimant fails to beat at trial a defendant’s Part 36 offer. CPR, r 36.14(2) provides that, where a claimant fails to obtain a judgment more advantageous to them than a defendant’s Part 36 offer, the court will (unless it considers it unjust to do so) order that the defendant is entitled to his costs (plus interest) from the expiry of the ‘relevant period’ to trial. CPR, r 36.2(2)(c) defines the ‘relevant period’ as the period specified in the defendant’s offer letter of not less than 21 days within which the defendant will be liable for the claimant’s costs if the offer is accepted. The court’s discretion to disapply the operation of Part 36 in ‘unjust’ circumstances is narrowly applied.

CPR, r 36.14A clarifies that ‘in relation to any money claim or money element of a claim, “more advantageous” means better in money terms by any amount, however small, and “at least as advantageous” shall be construed accordingly’.

Therefore, a claimant will usually lose QOCS protection if he is awarded less than the amount of the defendant’s money offer of settlement by whatever amount, however small. The implementation of CPR, r 36.14A (effectively overturning the Court of Appeal’s decision in  Carver v BAA plc) largely removed (subject to the court’s wide-ranging discretion as to costs) the element of subjectivity in the application of Part 36 offers. CPR, r 44.14 confirms that any such costs order against the claimant can be enforced without the court’s permission, ie by automatic effect following judgment. Therefore there is little room for the court’s discretion in the operation of Part 36 in displacing QOCS, save where the effect of Part 36 is unjust (CPR, r 36.14(2)).

However, a claimant’s costs liability to a defendant in relation to Part 36 offers is limited to the amount of damages actually awarded: CPR, r 44.14(1) states that subject to rr 44.15 and 44.16 (claims which are found to be ‘fundamentally dishonest’ or struck out by the court) orders for costs made against a claimant may be enforced without the permission of the court but only to the extent that the aggregate amount in money terms of such orders does not exceed the aggregate amount in money terms of any orders for damages and interest made in favour of the claimant.

CPR, r 36.10(4)(b) provides that where a Part 36 offer is accepted after the expiry of the relevant period, if the parties do not agree liability for costs, the court will make an order as to costs. CPR, r 36.10(5) states that in those circumstances, unless the court orders otherwise, the claimant will be entitled to the costs of the proceedings up to the date on which the relevant period expired and the offeree (the claimant) will be liable for the offeror’s (the defendant’s) costs for the period from the date of expiry of the relevant period to the date of acceptance.

CPR, r 44.14(2) states that orders for costs made against a claimant may only be enforced after the proceedings have been concluded and the costs have been assessed or agreed.

The effect of CPR, rr 36.10 and 44.14(2) is that a claimant’s late acceptance of a defendant’s Part 36 offer does not automatically give rise to an adverse costs order against the claimant; that is initially a matter for the parties, but, absent agreement, the court is likely to order the claimant to pay the defendant’s costs from the expiry of the relevant period to the date of actual acceptance of the offer (but limited to the amount of damages and interest actually agreed).

CPR, r 44.14(3) states that an order for costs against a claimant ‘shall not be treated as an unsatisfied or outstanding judgment for the purposes of any court record’. This means that any such judgments will not be entered on the register of outstanding judgments.

Have a question about this product? Please get in touch by completing the boxes below.

You May Also Like

APIL Personal Injury

APIL Personal Injury

Law, Practice and Precedents

"my preferred first port of call for any query on the law or procedure" PI Focus

Available in Lexis®Library
APIL Guide to Damages

APIL Guide to Damages

Substantially revised, updated and expanded to help you to construct a claim for damages

APIL Guide to Personal Injury Claims Procedure

APIL Guide to Personal Injury Claims Procedure

Provides practical guidance on conducting personal injury cases