1. What Are Fixed Costs in PI Settlements?

Fixed costs in personal injury settlements refer to the predetermined legal costs that are recoverable between parties in cases that fall within certain protocols. These are based on the settlement amount and are designed to provide predictability in legal costs.

2. How Fixed Costs Are Calculated

Fixed costs are calculated based on the settlement amount using the FRC (Fixed Recoverable Costs) scheme:

The calculation typically follows a tiered structure where different percentages or fixed amounts apply to different bands of the settlement value.

3. Importance of Fixed Costs Calculation

Details: Accurate calculation of fixed costs is essential for proper case budgeting, settlement negotiations, and ensuring compliance with cost recovery rules in personal injury cases.

4. Using the Calculator

Tips: Enter the settlement amount in pounds sterling. The calculator will determine the applicable fixed costs based on the current FRC scheme.

5. Frequently Asked Questions (FAQ)

Q1: What is the FRC scheme?
A: The Fixed Recoverable Costs scheme sets predetermined amounts that can be recovered for legal costs in certain types of cases, including many personal injury claims.

Q2: Do all PI cases qualify for fixed costs?
A: No, fixed costs typically apply to lower value claims (usually under £25,000) that follow certain protocols. Higher value or more complex cases may be exempt.

Q3: How often do the fixed costs rates change?
A: The rates are periodically reviewed and updated. Always check the latest version of the Civil Procedure Rules for current rates.

Q4: Are disbursements included in fixed costs?
A: No, certain necessary disbursements (like medical report fees) can usually be recovered in addition to the fixed costs.

Q5: Can fixed costs be challenged?
A: In exceptional circumstances where fixed costs would lead to "gross injustice," an application can be made for different costs to be awarded.