Understanding Civil Track Allocation and How It Affects Your Claim
When starting or considering a civil claim, one of the most important factors to consider is the recoverability of your legal costs. Understanding how your case is allocated within the civil track system is crucial, as this will directly influence the procedure, complexity, and costs involved.
In line with the court’s overriding objectives1 any applications to the court making a civil claim will be allocated to a specific track. This is done to ensure that cases are being dealt with proportionately and appropriately giving consideration to factors such as the money involved, complexity of issues and importance of the case.
What is The Civil Track System?
As a result, once a claim is submitted to the court and the defendant has responded with their defence, the case will be allocated to one of the established tracks.
There are four case management tracks to which a case can be allocated:
- Small claims track;
- Fast track;
- Intermediate track, and;
- Multi-track.
The allocation of a case to any of the four tracks can have a significant impact on the outcome and costs recoverable for any claim. These are explained further below.
Small Claims Track
The small claims track is for less complex matters of a value of £10,000 or less. The procedure for these types of claims is designed to be simple and cheap with less substantial hearing preparation and a straightforward trial process in order to make the process accessible for litigants in person. Despite this, the court is still able to grant remedies such as specific performance and injunctions in respect to any claims brought and allocated under this track.
Recovering costs under this track is limited; fixed costs are applied sparingly to cover basic expenses such as court fees for issuing a claim. Generally, it is the case that most legal fees are not recoverable.
Fast Track
There is also the fast track for less complex claims of a value greater than £10,000 but less than £25,000. These claims are designed to be streamlined to allow claims to go efficiently to trial. The trial itself should not be lengthy and not last any longer than a day.
When claims are initially allocated to the fast track, they are also allocated to one of four bands within that track based on the complexity of the case. These bands determine the scale of authorised fixed costs recoverable. The higher the complexity, the higher the costs that can be claimed. Assignment to a complexity band is based on the type of claim being brought and is set out in table 1 of CPR 26.152. If a claim is disposed of at trial, the recoverable costs (at the time of writing) range from £3,923 for a claim of complexity band one, to £8,155 plus an amount equivalent to 40% of the damages agreed for a claim in complexity band four (table 12 PD 45.44).
For a full breakdown of recoverable costs in the fast track see table 12 of PD 45.443.
Intermediate Track
For claims more complex than fast track but of a value more than £25,000 but no more than £100,000 there is the intermediate track. Introduced in October 2023, this track is for claims less complex than the multi-track, with a limited trial length of 3 days, and limitations on the number of experts than can be used per claim (only two permitted).
Similar to the fast track, there are four internal complexity bands in the intermediate track which dictate the amount of recoverable costs available on an ascending scale with the higher bands offering greater recoverable costs. Assignment to one of these bands is made considering factors including the estimated length of trial, seriousness of issues of law, and the type of claim, as set out in table 2 of CPR 26.164.
In the intermediate track, the costs recoverable up to trial range (at the time of writing) from £6,600 plus an amount equivalent to 15% of the damages in the lowest complexity band, to £29,000 plus an amount equivalent to 22% of the damages in the highest band (s8, Table 14 PD 45.50). For the full breakdown of recoverable costs see table 14 in PD 45.505.
Multi-track
Finally, there is the multi-track for claims of a higher value worth over £100,000 that are more complex and have a longer estimated trial duration. These claims will require parties to follow the most extensive procedure such as full disclosure of documents, drafting witness statements of fact, and have the greatest scope for expert evidence. Furthermore, they can be held in either the High Court or the County Court.
Recoverable costs in the multi-track are not fixed and therefore are left to the judge’s discretion who will determine costs in accordance with the Cost Management Rules6. Carefully drafted submissions of costs and pleadings are required to ensure that you can effectively claim and be awarded costs by the court and because of this it is crucial for both parties to consider mediation and/or settlement options well before the date of any trial.
Need Help Understanding Track Allocation or Recovering Your Legal Costs?
At Lewis Nedas Law, our experienced litigation solicitors can advise you on:
- Which track your claim is likely to be allocated to.
- What legal costs may be recoverable.
- How to navigate each stage of the litigation process strategically.
Contact us today to discuss your civil claim and cost recovery options.
Contact our expert team on 0207 387 2032 or complete our enquiry contact form.
Disclaimer:
This article is for general information purposes only and does not constitute legal advice. For tailored advice based on your circumstances, please contact our team directly.