Civil Litigation - major change in costs rules

By statutory instrument the UK government quietly brought in a major change to the costs & damages regime for England & Wales. This will come into effect for all cases issued in the courts from 6th April 2023.

The LS Gazette reports that the government has quietly changed the CPR at the beginning of February to allow the recovery by Defendants of costs from the Claimant’s settlement. This reverses the court ruling in Cartwright v Ho. Defendants will be able to set off costs not only against orders but also deemed orders and agreements to pay against damages as well as claimant costs. This change will apply to all claims issued after 6th April 2023.

So, Claimants will want to ensure they issue as much as they can before 6.4.23. Defendants may want to reassess how they approach Part 36 offers. ATE insurers will want to reassess risk. All will need to ensure that they revise wording of advice to clients on costs.

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