Question: Do solicitors still need to time record with Fixed Recoverable Costs?
Answer: There are various reasons why time recording may still be necessary:
- The new Fixed Recoverable Costs regime applies to the costs recoverable from the other side. If solicitors intend to continue to charge their clients on an hourly rate basis, detailed time records must continue to be kept.
- If a non-personal injury case suitable for the Intermediate Track settles “from pre-issue up to and including the date of service of the defence”, the costs are capped not fixed (CPR 45.50(3)) and are therefore subject to assessment if not agreed. Time records will therefore need to be kept for such cases up to the date of service of the defence.
- A party will not know whether a matter will be allocated to the Fast or Intermediate Track until allocation. If a matter is allocated to the Multi Track, fixed costs will not apply. If there is any uncertainty as to allocation, time records need to be kept up until that stage.
- CPR 26.18 allows the court to reallocate a case from the Intermediate Track to the Multi Track in “exceptional reasons”. If a matter is reallocated, time records will be required for all work undertaken pre-reallocation (CPR 45.14(1)).
- The Court may consider a claim for an amount of costs which is greater than the fixed recoverable costs where there are “exceptional circumstances” (CPR 45.9(1)). There will be no point in applying for such costs if time records have not been kept.
- CPR 45.10(1) allow the court to consider a claim for an amount of costs which is greater than the fixed recoverable costs where a party or witness is vulnerable, that vulnerability has required additional work to be undertaken and by reason of that additional work alone, the claim is for an amount that is at least 20% greater than the amount of fixed recoverable costs. Again, time records will be needed to make such an application.