PRACTICE DIRECTION AMENDMENTS COMING INTO FORCE 6th APRIL 2024 (2) VAT AND COUNSEL’S FEES

The 165th update to the Practice Direction comes into force on the 6th April 2024, alongside the 163rd amendment looked at in the previous post.  The amendments can be found here.

This Practice Direction deals with adding VAT to fixed costs of pre-action applications and the issue of when counsel’s fees are payable when a case is settled or removed from the list prior to the hearing.

VAT

PRACTICE DIRECTION 45 – TABLE OF FIXED COSTS (2024)
2) In Table 1, after section C insert—
“D. Where appropriate, VAT may be recovered in addition to the fixed
costs in this Table

5) In Table 15A, after paragraph (2) insert—
“(3) Where appropriate, VAT may be recovered in addition to the fixed costs
or the cost of any disbursement in this Table

 

TRIAL ADVOCACY FEES: WHAT A DIFFERENCE A DAY MAKES…

Trial advocacy fees: Table 12(5) and (6)
In calculating the number of days, rule 2.8(2) shall not apply and any advocacy
fee is to be computed by reference to the following examples.
Examples
(1) A claim allocated to the fast track is settled not more than 1 day before the
date listed for trial.
The trial date is Monday 23 October.
Settlement not more than 1 day before the date listed for trial, means that the
claim was settled on or after Friday 20 October, but before Monday 23 October.
(2) A claim allocated to the fast track is removed from the list not more than 1 day
before the date listed for trial.
The trial date is Thursday 26 October
Removal from the list not more than 1 day before the date listed for trial, means
that the claim was removed from the list on Wednesday 25 October.
(3) A claim allocated to the fast track is settled more than 1 day, but not more than
2 days, before the date listed for trial.
(a) The trial date is Monday 23 October.
Settlement more than 1 day, but not more than 2 days, before the date listed
for trial, means that the claim was settled on Thursday 19 October.
(b) The trial date is Thursday 26 October.
Settlement more than 1 day, but not more than 2 days, before the date listed
for trial, means that the claim was settled on Tuesday 24 October.”.

4) After Table 14—
a) after “Trial advocacy fees:” omit “Table 12(5) and (6) and”;
b) for “A “day” means a clear day (see rule 2.8(3) and (4))” substitute—
“In calculating the number of days, rule 2.8(2) shall not apply and any advocacy
fee is to be computed by reference to the following examples.”; and
c) under the heading “Examples”—
i) for example (1) substitute—
“(1) A claim allocated to the intermediate track is settled not more than 1 day
before the date listed for trial.
The trial date is Monday 23 October.
Settlement not more than 1 day before the date listed for trial, means that the
claim was settled on or after Friday 20 October, but before Monday 23 October.”;
and
ii) after example (2) insert—
“(3) A claim allocated to the intermediate track is removed from the list more than
1 day, but not more than 5 days, before the date listed for trial.
The trial date is Thursday 26 October.
Removal from the list more than 1 day, but not more than 5 days, before the date
listed for trial means that the claim was removed from the list on or after Thursday
19 October, but before Wednesday 25 October.”.