The Fixed Costs Determination process (FCD) was implemented on 1 October 2024 and with this new procedure the Precedent U was also introduced. The Precedent U is the first formal document, implemented for use specifically in the fixed costs regime.

For an overview of the FCD procedure, please see our comprehensive overview of the same. Below is a guide on how the form looks and what information is required to complete it.

Section A

This first section outlines the case details and the receiving party is also required to set out the track, band and value of the claim. The receiving party is also required to complete the relevant fixed costs calculations, and outline disbursements and court fees that they are seeking to recover.

It is at this stage that the receiving party should also indicate whether they are seeking costs pursuant to CPR 45.9, CPR 45.10, or CPR 45.50 (3) and / or CPR 45.13. The provisions deal with increased costs based on exceptional circumstances, vulnerability, and unreasonable conduct as well as assessment of fees on non-issued personal injury cases.

For the information provided within Section A to be valid, a statement of truth must also be signed by the receiving party to verify the costs which are being sought.

Section B

This section has three columns.

The first column is completed by the receiving party and outlines the sum of the fixed costs claimed, disbursements and court fees claimed and an explanation in support of those fees.

The second column provides the paying party the opportunity to respond to the receiving party’s claim, with the chance to make an offer for each item and outline an explanation as to why the original sums are not agreed.

The third column is completed by the Court if the parties are unable to reach agreement and the matter is determined by them.

Section B also requires a signature by the paying party.

Section C

Section C requires the receiving party to outline the basis of their claim for additional sums and provides the receiving party the opportunity to respond.

As touched on above, this section only requires completion when costs are sought pursuant to CPR 45.9, 45.10, 45.50(3) and/or 45.13. Therefore, Section C will only be used when claims are made for costs exceeding fixed recoverable costs where there are exceptional circumstances, unreasonable conduct and/or there is a vulnerable party or witness. It will also be used in the context of stage S1 costs, in non-personal injury claims where the costs are subject to a cap as opposed to being fixed.

When claiming costs under any of the conditions exhibited above, a separate N260 must be completed and submitted.

The form is limited in size and it may also be the case that a witness statement and supporting evidence is prepared and advanced when this section is completed.

 

Angela is a Paralegal in the Costs and Litigation Funding Department at Clarion Solicitors. You can contact the team at civilandcommercialcosts@clarionsolicitors.com