Fixed Costs, Multiple Claimants: Facts of the Case

The case of Melloy & Anor v UK Insurance Ltd [2022] arose from a personal injury claim, with two claimant’s, which occurred as a result of a road traffic accident. The claim for damages settled in July 2020. The settlement was subsequent to a successful Part 7 claim for damages, this settlement was preferential to the Claimants, as the earlier Part 36 offers had been lower.

Following settlement of the Part 7 claim, a short hearing was required in the County Court at Plymouth. This was to address the costs payable, especially issues relating to the fixed costs regime. His Honour Judge Glen highlighted how this case had originally been allocated to the fast track but due to shortages on the District Bench, he would be hearing the matter.

Issues to be considered by the court

The Claimant’s advocate relied on authority from Neary v Neary v Bedspace Resource Limited to argue that the costs order should contain separate awards of fixed costs for each claimant involved in the claim, under Section C of Table 6B in CPR45. In the stated authority, the judge decided “that the Protocol and therefore CPR45.29A contemplate only a single claim and a single claimant”. Thus, each claimant is entitled to recover a separate set of fixed costs from Table 6B.

Opposingly, the advocate for the Defendant argued that although paragraph b within Section C refers to separate awards of fixed costs, single awards of costs are otherwise recovered.

Furthermore, the Defendant attempted to differentiate between the Neary matter and the case at hand. He stated that, this case was put forward as one claim, with two claimants, so there should only be one award of fixed costs.

How did the judge decide?

HHJ Glen looked to the rules and the protocol and considered the wording of the protocol itself.

He provided an in-depth analysis of the word ‘claim’. The judge did this by comparing its ordinary meaning to the meaning used in CPR45.29. He noted that ‘at first sight, the word ‘claim’ might be taken to denote the court proceedings”. This meaning can be seen in CPR45.29C(4)(a). Alternatively, CPR45.29A seems to convey that “a claim may have started life under the Protocol but has continuing existence outside of it”.

Moreover, he analysed whether it would be disproportionate to award the claimant’s solicitors with two awards of fixed costs. This was considered as the defendant’s advocate proposed that there was not much more additional work involved in representing two claimants from the same claim.

Fixed Costs, Multiple Claimants: The court’s decision 

The judge concluded that for the purposes of Part 45 CPR IIIA, “the expressions ‘claim’ and claimant’ have an autonomous meaning”. He stated that these expressions “refer to the claim started by, and the claimant who submitted, the claims notification form and not to the claim or claimant in the proceedings”.

In accordance with this, the judge found in favour of the claimants. He stated that if both claimants have submitted a claims notification form, and the claim is governed by Part IIIA of CPR45, then the claimants will be entitled to fixed costs under separate awards.

How can ARC Costs assist?

As a team of expert Costs Draftsmen and Costs Lawyers, we can aid on a matter pre or post CPR 45 dispute. Typically, once the papers have been provided to us, we can establish an interim payment within two weeks. Once this has been sought, we aim to settle the dispute within two months.

If other costing instruments are necessary, such as a Bill of Costs, our team can prepare this. Although this may extend the time spent handling the dispute, our clients can have confidence in us. With 96% of our fixed costs matters succeeding at this stage, we have proven our reliability and expertise.

If you are the receiving party in a case which falls outside of the fixed costs regime, we can help by drafting your bill of costs, as well as Points of Reply and negotiating your bill of costs with the other side before advising on whether the claim should proceed to a Detailed Assessment Hearing.

As independent costs experts, we can alternatively be instructed by the paying party to settle Points of Dispute and to minimise the costs claim be made against them.

If you would like to find out more about how we can assist you in your CPR45 dispute, please contact us on 01204 397302 or info@arccosts.co.uk.

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