Mr Sokar Bek v Mr Ali Simsek
District Judge John Baldwin (sitting as a Regional Costs Judge at the County Court at Liverpool)
Overview
The Claimant brought a claim for vehicle related damages that included credit hire arising out of an RTA on 22/11/2022. PAV was paid in the sum of £23,119.20. The Claimant further accepted the Defendant's Part 36 offer in respect of the remainder of the claim of £6,893, concluding the damages claim pre-litigation.
The Claimant presented details of his costs on an hourly rate basis. An agreement on costs was not possible so the Claimant issued Part 8 Costs Only Proceedings on 18th December 2023. A costs order in the County Court at Liverpool was made allowing the Claimant to commence Detailed Assessment Proceedings.
The Defendant served Points of Dispute and the Claimant served Replies with the matter ultimately being set down for a Provisional Assessment on 22nd May 2024.
The Provisional Assessment was adjourned until 24th July 2024 with the Claimant having until 12th July 2024 to file at Court full information explaining how the legal representative's charges are to be calculated, given the dispute arising from CPR 47.15(4) and 47PD. 14, paragraphs14.3(b) and 47PD. 13.2 (i).
The Provisional Assessment was further adjourned until 11th September 2024 where the decision was found in favour of the Defendant that FRC costs applied.
The Claimant requested an Oral Review in respect of the application of fixed costs and the banding of FRC pursuant to CPR 47.15 (7)-(10). The Oral Review was listed for 19/12/2024.
Oral Review
The Oral Review was heard by District Judge Baldwin and both parties were represented by Counsel. The court was to consider the transitional provisions of the Civil Procedure (Amendment No.2) Rules 2023.
The Claimant's contention was that FRC did not apply as the case settled by way of Part 36 acceptance prior to 1st October 2023, without the need for 'proceedings' on the substantive clam.
The Defendant argued that 'proceedings' were issued post 30th September 2023 by way of costs only proceedings and therefore the FRC provisions apply.
District Judge Baldwin found that FRC do apply to the assessment of the costs of the original claim. In his judgment he confirmed that 'the 2023 SI can safely and should be plainly read as meaning that if proceedings of any sort are required to conclude a claim, to include obtaining an order for the costs of that claim, then if those proceedings are or were issued after 30th September 2023, FRC apply, if otherwise applicable'.
Following the Oral Review, the Claimant's costs were assessed at £914.50 pursuant to CPR 45.44, Table 12* with the costs of Part 8 proceedings being assessed at £239. The Claimant was ordered to pay the Defendant's costs of assessment which were agreed at £6,000.
The Claimant will not be appealing the decision.
What this means for insurers
Although not binding, it is hoped that this decision will bring to an end pre-litigation claims based on hourly rates in vehicle related damages claims and subrogated recoveries.
If proceedings of any sort are required to conclude a claim, to include obtaining an order for the costs of that claim, then if those proceedings are or were issued after 30th September 2023, FRC applies.
Comment
DWF have had considerable success in reducing property damage claims to Band 1 from the often claimed Band 4.
This represents DWF's commitment to testing and resolving contentious issues in the new fixed costs regime as quickly as possible without entertaining skirmishes that may lead to a return to the so called "Costs Wars" between Solicitors and Compensating Parties.
Bond Turner (represented by Mr Ben Williams KC) for the Claimant (receiving party)
DWF Costs (represented by Miss Sophia Ashraf) for the Defendant (paying party)
Authors: Lionel Marcus, Rebecca Heyes & Katie Williamson
TABLE 12: rule 45.44 – amount of fixed costs in the fast track
