Are claimants incurring court fees unnecessarily?

The most notable increases in court fees are on the larger value claims. For example, a claim issued in 2013 for £200,000 would have cost £1,275; however, as of April 2015, it now costs £4,000.  Further, a standard application once cost £80; now it’s £255.

How could a claimant afford such a cost?

There have previously been remission schemes in place for those in need of financial help with court fees, but the new reimbursement scheme is notably more substantial than those in place in 2013. As per the old remission scheme, court fees may be refunded in full based on receipt of one of the specified benefits or on a specified gross annual income and further may be refunded in whole or part based on net monthly income and permitted expenditure.

The criteria has since changed and factors such as savings and income level are to be taken into account. The question is whether claimants are aware of the eligibility and, following this, whether their representing solicitors are advising accordingly.

In completing an application for fee remissions, the applicant must disclose their savings, the benefits they receive and their monthly income. Details of any dependants and a partner’s income must also be disclosed where applicable due to allowances being given for the same. The level of court fee determines the amount of savings which is to be taken into account, however the level of income is not subject to this. Full details can be found on the ex160A form.

It should be noted that applications for court fee remissions can be made at the time payment is required or a refund may be requested but this is only possible within three months of making the payment.  

As an example, if a single parent was to issue a claim for up to £100,000, an issue fee of £5,000 would be payable. The scheme specifies that if the claimant has less than £10,000 in savings, is in receipt of one of the six benefits listed or has an income lower than £1,330 per month, then no fee would be payable.

There are clearly significant savings for paying parties and it is presumably implied that these exemptions and remissions extend to fees the claimant seeks to recover as costs from an unsuccessful defendant. The forms request only the circumstances of the claimant and their partner and do not take into account funding from BTE insurance policies.

It is unclear from a defendant’s perspective how thoroughly this is being investigated by a claimant’s representative and if this is being taken advantage of by the claimant.

There is the potential for a claimant to receive these exemptions / refunds yet their representatives also seek to recover the fees in full in assessment proceedings. It is therefore of great importance that defendant insurers and their nominated solicitors make these enquiries and prevent this potential behaviour.

We are routinely challenging court fees that are claimed as costs where the claimant failed to apply for a remission to which they were entitled. These court fees are unreasonably incurred and are not recoverable from the unsuccessful defendant.

Note a fee remission calculator is available on the court’s website at:
HMCTS fee remission calculator