IPEC Cost Recovery Increases To '60,000

• Published date: 29 September 2022
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation, Civil Law
• Law Firm: Waterfront Solicitors LLP
• Author: Mr Matthew Harris

In the recently published post Waterfront Law - The IPEC Guide, we highlighted the "costs cap" as a feature of IPEC that is of real benefit to litigants.

This is because a party can be confident that, should it lose in IPEC on liability (i.e. usually the decision on whether there has been infringement), there is a maximum amount it will usually be ordered to pay towards the other side's legal costs. That amount is currently '50,000.

On 1 October 2022, the costs cap will increase to '60,000.¹

In IPEC, the overall costs cap is broken down by stages of the litigation. There is a limit on how much a winning party can recover in respect of the amount spent on specific stages of the litigation (e.g. drafting its Defence).

These limits will also increase on 1 October 2022 as set out below:²

As a final point, the courts have held that where a Claimant obtains a result in litigation that at least equals a "Part 36" settlement offer it has made to the Defendant(s)...