Legal costs in different tracks
Costs amounts and recovery depend on allocating the case to one of the four different tracks and can be fixed in specific cases.
Costs in the small claims track
County Court claims that do not exceed £10,000 are normally allocated to the small claims track. The small claims track has less of a costs risk than bringing higher value claims.
Possession cases are not normally allocated to the small claims track.
Disrepair cases are allocated to the small claims track where the cost of works and the value of any damages claimed is under £1,000.
Legal costs in the small claims track
In most cases allocated to the small claims track, the claimant and defendant pay most of their own legal costs. This is because the small claims procedure is designed to enable individuals to litigate in person, without using a solicitor, or other legal representative.
The judge in a small claims case can make an order that the losing party pays some of the other side's costs. This is normally limited to:[1]
fixed costs involved in issuing the claim
loss of earnings and travel costs of the party or witnesses attending the hearing
expert's fees
court fees
When the parties can be ordered to pay full costs
If a party has behaved unreasonably, for example, making unnecessary applications or refusing to co-operate, the court could order that party to pay the other side's costs. A claimant who issues a fraudulent claim can be ordered to pay full costs.
In one County Court case, a judge ordered a claimant who did not properly set out their claim or set out a cause of action to pay £17,000 of the defendant's court costs.[2] Read a summary of Reed v Boswell on Shelter Legal.
Pre allocation of costs
The Court of Appeal has held that, at least in disrepair cases, it could be appropriate to award pre-allocation costs for legal advice where the landlord has not fulfilled certain obligations to repair premises before a claim but takes certain measures to resolve the issue of disrepair before the case is allocated to a track.
This is a practical measure to ensure that a tenant is able to recover reasonably incurred costs where their case ends up in the small claims court but, had repairs not been undertaken, it would have been a fast-track issue due to the provisional level of damages. [3]
Costs in the fast track
The fast track is the normal track for any claim between £10,000 and £25,000, provided the trial is not likely to last for more than one day. The idea of the fast track is to enable relatively straightforward matters to be dealt with within the one-day limit.
There are fixed amounts that a solicitor can claim as costs for preparing for, and appearing at the trial in a fast track case.[4] The court has a limited power to award more or less than these fixed amounts. The court may, for example, award an additional amount in respect of a party's legal representative attending the trial where necessary to assist the advocate.[5]
Costs in the intermediate track
The intermediate track is the normal track for any claim for which the small claims track or the fast track is not the normal track.[6] From 1 October 2023, it applies to cases with a value between £25,000 and £100,000 and the trial is not likely to last for more than three days.
As in the fast track, there are fixed amounts that a solicitor can claim as costs for preparing for, and appearing at the trial in an intermediate track case.[7]
Costs in multi-track cases
The multi-track is the normal track for any claim for which the small claims track or the fast track or the intermediate track is not the normal track.[8] This track applies to cases with a value exceeding £100,000 and the estimated time for the trial is longer than in the other tracks.
Although cases on the small claims and the fast tracks will always be in a county court, multi-track cases may be in either the High Court or county court.
The costs limits that apply to small, fast and intermediate track cases do not usually apply to multi-track cases, so the paying party must pay those costs that are reasonable and proportionate.[9]
Fixed costs
There are a number of specific circumstances in which the court rules state that costs will be fixed at a certain level. These include, for example:
a money claim in which the claimant is able to enter judgment because the defendant has not defended the case, or the claimant obtains a summary judgment[10]
costs incurred in enforcing a judgment[11]
possession cases, dealt with in the section costs in specific cases
The fixed costs can be disapplied by the court, which can allow higher costs claims.[12]
Last updated: 13 December 2023