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Scope
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| 25A.1 |
Section II of Part 45 (‘the Section’)
provides for certain fixed costs to be recoverable between parties in respect
of costs incurred in disputes which are settled prior to proceedings being
issued. The Section applies to road traffic accident disputes as defined in
rule 45.7(4)(a), where the accident which gave rise to the dispute occurred on
or after 6th October 2003. |
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| 25A.2 |
The Section does not apply to diputes where the total
agreed value of the damages is within the small claims limit or exceeds
£10,000. Rule 26.8(2) sets out how the financial value of a claim is
assessed for the purposes of allocation to track. |
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| 25A.3 |
Fixed recoverable costs are to be calculated by
reference to the amount of agreed damages which are payable to the receiving
party. In calculating the amount of these damages – |
| | (a)
| account must be taken of both general and
special damages and interest; |
|
| | (b)
| any interim payments made must be
included; |
|
| | (c)
| where the parties have agreed an element of
contributory negligence, the amount of damages attributed to that negligence
must be deducted; |
|
| | (d)
| any amount required by statute to be paid by
the compensating party directly to a third party (such as sums paid by way of
compensation recovery payments and National Health Service expenses) must not
be included. |
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| 25A.4 |
The Section applies to cases which fall within the
scope of the Uninsured Drivers Agreement dated 13 August 1999. The section does
not apply to cases which fall within the scope of the Untraced Drivers
Agreement dated 14 February 2003. |

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Fixed recoverable costs formula
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| 25A.5 |
The amount of fixed costs recoverable is calculated
by totalling the following –
|
| | (b)
| 20% of the agreed damages up to £5,000;
and |
|
| | (c)
| 15% of the agreed damages between £5,000
and £10,000. For example, agreed damages of £7,523 would
result in recoverable costs of £2,178.45 i.e. £800 + (20% of £5,000) + (15% of
£2,523). |
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Additional costs for work in specified areas
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| 25A.6 |
The
area referred to in rule 45.9(2) consists of (within
London) the county court districts of Barnet, Bow, Brentford, Central London,
Clerkenwell, Edmonton, Ilford, Lambeth, Mayors and City of London, Romford,
Shoreditch, Wandsworth, West London, Willesden and Woolwich and (outside
London) the county court districts of Bromley, Croydon, Dartford, Gravesend and
Uxbridge. |
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Multiple claimants
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| 25A.7 |
Where there is more than one potential claimant in
relation to a dispute and two or more claimants instruct the same solicitor or
firm of solicitors, the provisions of the section apply in respect of each
claimant. |

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Information to be included in the claim form
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| 25A.8 |
Costs only proceedings are commenced using the
procedure set out in rule 44.12A. A claim form should be issued in accordance
with Part 8. Where the claimant is claiming an amount of costs which exceed the
amount of the fixed recoverable costs he must include on the claim form details
of the exceptional circumstances which he considers justifies the additional
costs. |
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| 25A.9 |
The claimant must also include on the claim form details of any disbursements or success fee he wishes to claim. The
disbursements that may be claimed are set out in rule 45.10(1). If the
disbursement falls within 45.10(2)(d) (disbursements that have arisen due to a
particular feature of the dispute) the claimant must give details of the particular feature of the dispute
and why he considers the disbursement to be necessary. |

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Disbursements and success fee
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| 25A.10 |
If the parties agree the amount of the fixed
recoverable costs and the only dispute is as to the payment of, or amount of, a
disbursement or as to the amount of a success fee, then proceedings should be
issued under rule 44.12A in the normal way and not by reference to Section II
of Part 45. |