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Litigation Letter

Fixed success fees

The Civil Procedure (Amendment) Rules 2004 (SI 2004 No 1306) implemented, with effect from 1 June, the industrial agreement in respect of fixed success fees in RTA cases commenced since 5 October 2003, where the predictable costs provisions do not apply. The full agreement is set out at 23/ LL p15 and provides success fee at 12.5% for all settlements before trial and 100% for actions concluding at trial. Where the claim exceeds £500,000 the claimant may apply for the 12.5% uplift to be increased, but unless he obtains an increase of more than 20% the application will fail and the claimant will be ordered to pay the costs. For counsel, there is a 100% increase where the case concludes at trial; 50% if the claim concludes 14 days or less before ‘the date fixed for the commencement of the trial’ or 12.5% on the fast track and 75% on the multi track if the claim concludes 21 days or less before the date fixed for the commencement of the trial, together with 12.5% if the case settles before allocation and 12.5% in respect of costs-only proceedings. Rule 45.17 defines ‘the date fixed for the commencement of the trial’.

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