Introduction to the Fixed Costs Determination (FCD) Process in Civil Litigation

One year has passed since the expansion of the Fixed Recoverable Costs (FRC) regime to cover all types of civil litigation claims valued up to £100,000. As more cases fall within this extended scheme, the lack of tested guidance on track allocation and disbursement recoverability has led to a rise in fixed costs disputes.

To address this, the Civil Procedure Rules (CPR) have been updated to introduce the Fixed Costs Determination (FCD) process and a new Precedent U.

What Is Precedent U?

Outlined in CPR 45 Section X, Precedent U is an Excel-based form used to streamline the FCD process. It consists of three sections:

🔹 Section A: Claim Overview

• Includes claim details, allocated track, banding, and claim value.
• Lists fixed costs, disbursements, and court fees.
• Requires references to relevant CPR stages or rules.
• Ends with a statement of truth and confirmation of payment responsibilities.

🔹 Section B: Cost Justification and Challenges

• Functions like a quasi-Precedent G.
• Allows the receiving party to explain costs.
• Provides space for the paying party’s counteroffer and challenges.
• Includes a section for the Court’s annotations and decisions.

🔹 Section C: Exceptional Cost Claims

Used for claims under:

• CPR 45.9 – Exceptional circumstances
• CPR 45.10 – Vulnerable parties or witnesses
• CPR 45.50(3) – Stage S1 assessments (non-personal injury)
• CPR 45.13 – Unreasonable behaviour

Requires submission of Form N260 and space for the paying party’s response.

Summary Assessment After Hearings

Under CPR 45.63, fixed costs can be summarily determined at the end of a hearing. Parties must file and serve Precedent U at least 24 hours before the hearing. If summary determination isn’t possible, the Court may decide costs without a further hearing, treating it as an interim application under CPR 45.8.

Applying FCD After Settlement

If a claim is settled without a hearing:

• Litigated matters require a Part 23 application.
• Non-litigated matters require costs-only proceedings with Precedent U and supporting evidence.

The paying party must respond within 21 days, completing Sections B and C. The Court will then determine costs without a hearing.

Process costs are capped at £500 + VAT, as per Table 17, plus the court fee.

Right to Appeal a Fixed Costs Determination

Parties may request a hearing to challenge the determination. The requesting party pays the hearing costs unless they achieve a 20%+ adjustment in their favour. These costs are treated as interim application costs (£250–£333).

Part 36 Offers Disapplied

CPR 45.66 confirms that Part 36 offers do not apply to FCD determinations. Without the incentives of early offers, the FCD process becomes the preferred route over negotiation.

Contact Our Costs Experts

For queries regarding regarding the Precedent U, please contact Kris Kilsby or Helen Spalding.

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