On 7 May 2018, the Pre-action Protocol for Resolution of Package Travel Claims, which defines such claims as gastric illness contracted during a package holiday, came into force. The Protocol applies to package travel claims valued at no more than £25,000. Simultaneously, the Civil Procedure Rules were updated to bring gastric claims into scope of the fixed costs regime.
WHAT FIXED COSTS ARE RECOVERABLE?
| STAGE OF CLAIM | RECOVERABLE FIXED COSTS |
| Where settlement is agreed before a claim is issued and damages are between £1,000 and £5,000 | £950 plus 17.5% of damages |
| Where settlement is agreed before a claim is issued and damages are between £5,000.01 and £10,000 | £1,855 plus 10% damages over £5,000 |
| Where settlement is agreed before a claim is issued and damages are over £10,000 | £2,370 plus 10% damages over £10,000 |
| Where claim is settled on or after issue but before allocation | £2,450 plus 17.5% of damages |
| Where issued claim is settled after allocation, but prior to listing | £3,065 plus 22.5% of damages |
| Where issued claim is settled after allocation, but prior to listing | £3,790 plus 27.5% of damages |
| Where claim is concluded at trial | £3,790 plus 27.5% of damages plus |
ARE DISBURSEMENTS ALSO RECOVERABLE?
Yes. The Court can award recovery of certain disbursement costs, which include (but are not limited to) those arising from medical records/reports, expert reports, travel expenses, Court fees and expert attendance at trial.
WILL THE FIXED FEE REGIME BE EXTENDED TO INCLUDE PERSONAL INJURY CLAIMS?
The Ministry of Justice has confirmed that, for the time being, the fixed cost’s regime will not be extended to personal injury package holiday claims. This means that claimant legal representatives benefit from recovering their fees based on their hourly rates. Those defending such claims must assess claimant costs based on the concept of proportionality.
For the time being, the attention of the Ministry of Justice remains on proposed changes to whiplash claims under the Civil Liability Bill [HL] 2017-19 (this is currently at the report stage in Parliament). However, there remains a possibility that a surge in personal injury package holiday claims may bring these claims back into focus.
CONTACT US
Please do not hesitate to contact Mark Fanning or Lucy Schofield if you would like to discuss any aspect of the Package Travel and Linked Travel Arrangements Regulations 2018.
