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Escape Fixed Recoverable Costs in 2025 | DMD Costs

Snapshot for busy fee-earners

• FRC now governs fast track and the intermediate track up to £100,000 with banded tables in PD 45 (Tables 12 & 14) and a dedicated NIHL Table 15. (Justice.gov.uk)

• The clean exits from FRC (without reallocation) in 2025 are: CPR 45.9 (exceptional circumstances), CPR 45.10 (vulnerability) with the 45.11 “20% test”, and CPR 45.1(3)(b) contracting-out by express agreement. (39 Essex Chambers, Irwin Mitchell)

• Part 36 has changed in FRC cases: beating your own offer no longer gives indemnity costs; instead you get a 35% uplift on the difference between the stage at expiry and the stage at judgment (CPR 36.24). Broadhurst v Tan still matters outside FRC. (Justice.gov.uk, Temple Garden Chambers)

• Housing disrepair remains exempt from FRC until October 2028 (so hourly rates still apply there). (blog.anthonycollins.com)

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Route 1 — CPR 45.9: “Exceptional Circumstances”

What it is: The court may allow assessed costs above FRC if exceptional circumstances make FRC inappropriate. There’s no statutory definition—think out of the norm for the case type. (39 Essex Chambers, Westgate Chambers)

When it bites (examples that have persuaded courts):

• Substantial satellite litigation or novel legal issues.

• Heavy/multi-source disclosure (thousands of pages, third-party or multilingual).

• Procedural chaos caused by the opponent (late surveillance/ambush evidence, serial non-compliance).

Important 20% rule (CPR 45.11): even if 45.9 is engaged, assessed costs must exceed FRC by ≥20%—or you recover the lesser figure (and you may be penalised on the costs of the costs). (39 Essex Chambers)

How to run it:

• Flag 45.9 early (directions/CMCs) and again at assessment.

• Serve a detailed Bill (not just a fixed figure) with chronology, disclosure indices, time records.

• Evidence the delta versus FRC tables (PD 45). (Justice.gov.uk)

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Route 2 — CPR 45.10: Vulnerability-Driven Departure

What it is: Where party/witness vulnerability makes extra work necessary (special measures, additional attendances, expert input), the court can depart from FRC. The 45.11 20% test still applies. (39 Essex Chambers)

Practical proof pack:

• Medical/psych evidence of vulnerability and why it drove extra steps.

• Listings/adjournments or measures attributable to vulnerability.

• Time records showing incremental tasks and attendances.

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Route 3 — CPR 45.1(3)(b): Contracting Out (by Consent or Order)

What it is: Since 6 April 2024, the Rules expressly allow parties to agree that Part 45 does not apply. Use this in consent orders/Tomlin orders or settlement terms:

“The parties expressly agree that CPR Part 45 shall not apply and that the receiving party’s costs shall be assessed if not agreed.”

This preserves the hourly assessment route even in fast/intermediate track claims. (Irwin Mitchell, Kennedys Law)

When it’s realistic: post-liability deals, complex evidential burdens, or where defendants want closure on damages—trade that for assessed costs. (Ensure the wording is explicit.)

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Not an “escape”, but valuable boosters inside FRC

A) CPR 36.24: the 35% uplift (replaces Broadhurst within FRC)

If judgment is at least as advantageous as your own Part 36, you do not get indemnity costs in FRC cases. Instead, you get additional costs = 35% of the difference between fixed costs at expiry and those at judgment (plus any applicable additional fixed costs). Diary the RP and compute the delta. (Justice.gov.uk)

B) CPR 45.13: “Unreasonable behaviour” adjustment

Court may increase or reduce FRC by up to 50% for unreasonable conduct (note: the uplift applies to FRC only, not VAT/Part 36 uplifts/disbursements). Use where opponents stonewall. (39 Essex Chambers)

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Mixed claims & categorical scope (2025 reality check)

• NIHL now has its own fixed table (PD 45 Table 15). Some disease claims sit within FRC (track/band dependent); mesothelioma and certain categories typically sit outside (often multi-track regardless of value). Check CPR 26.9(10) and Part 45 scope before assuming an exclusion. (Justice.gov.uk, Herbert Smith Freehills)

• Housing disrepair is exempt from FRC until Oct 2028 (hourly route). (blog.anthonycollins.com)

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Step-by-step playbook (copy/paste)

1. Map FRC exposure

Identify track, complexity band, and the PD 45 table you’re on (fast-track Table 12 / intermediate Table 14 / NIHL Table 15). (Justice.gov.uk)

2. Build your exit case

• If exceptional: assemble your 45.9 pack (novel issues, bulk disclosure, opponent misconduct) + 45.11 20% analysis.

• If vulnerability: gather the measures, listings impact, and incremental tasks (45.10/45.11). (39 Essex Chambers)

3. Contract out where you can

Bake 45.1(3)(b) into consent orders/terms. Use the explicit wording. (Irwin Mitchell)

4. Bank the boosters

• Serve Part 36 early; if you beat it, run 36.24 calculations.

• Plead 45.13 where conduct warrants it. (Justice.gov.uk, 39 Essex Chambers)

5. Draft for assessment

Where exiting FRC, serve a proper Bill/e-Bill (PD 47), evidence time by phase, and cross-refer to why FRC is inadequate (or inapplicable). Quote the delta vs table. (Justice.gov.uk)

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Worked mini-scenarios

• Heavy disclosure EL claim (fast track band 3): third-party records in two languages; late surveillance. Apply 45.9, show why FRC is inadequate; pass the 20% threshold with a granular Bill. (39 Essex Chambers)

• Vulnerable claimant with special measures: multiple adjournments and extra conferences. 45.10 + 45.11; keep an audit trail tying tasks to vulnerability. (39 Essex Chambers)

• Tight damages deal on an intermediate-track PI: defendants want speed. Insert 45.1(3)(b) in the order so Part 45 doesn’t apply; proceed to hourly assessment if costs aren’t agreed. (Irwin Mitchell)

• You beat your own Part 36 at trial in an FRC case: no indemnity basis; compute the 36.24(5) 35% uplift on the stage-to-stage difference and claim it. (Justice.gov.uk)

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FAQs (quick, high-intent)

Does Broadhurst v Tan still get me indemnity costs in FRC?

Not in FRC cases—CPR 36.24 replaces indemnity with the 35% uplift. Broadhurst applies outside FRC. (Justice.gov.uk, Temple Garden Chambers)

What proof wins a CPR 45.9 application?

Evidence that the case work is well beyond the norm for the band—disclosure volume, expert spread, and opponent-driven inefficiency—plus a delta vs FRC showing you clear the 20% rule. (39 Essex Chambers)

Can we contract out of FRC?

Yes—if both sides expressly agree (CPR 45.1(3)(b), in force from 6 April 2024). Use explicit wording in the order. (Irwin Mitchell)

Are disease claims excluded?

Not across the board. NIHL has fixed costs (Table 15); mesothelioma and some categories are typically outside. Check your track/band and PD 45. (Justice.gov.uk, Herbert Smith Freehills)

What about housing disrepair?

Exempt until Oct 2028—hourly assessment still applies. (blog.anthonycollins.com)

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How DMD Costs turns routes into recovery

• 45.9/45.10 applications that stick: We build the evidence bundle, run the 20% rule, and draft submissions that meet the Rule’s language. (39 Essex Chambers)

• Contract-out wording: We embed 45.1(3)(b) in your consent orders so you aren’t trapped in FRC by accident. (Irwin Mitchell)

• Part 36 & 45.13 arithmetic: We model 36.24 uplifts and conduct adjustments precisely against PD 45 tables. (Justice.gov.uk)

• Bills/e-Bills built for scrutiny: PD 47-compliant, phase-true, voucher-tight—so when you exit FRC, you recover every penny.

CTA: Send us your live FRC file. We’ll return a costs strategy and draft within one working day.

First file free. info@dmdcosts.co.uk

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