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The Civil Procedure Rules 1998

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[F1Expenses incurred by a litigation friendE+W

21.12.(1) [F2Subject to paragraph (1A), in] proceedings to which rule 21.11 applies, a litigation friend who incurs [F3costs or] expenses on behalf of a child or protected party in any proceedings is entitled on application to recover the amount paid or payable out of any money recovered or paid into court to the extent that it—

(a)has been reasonably incurred; and

(b)is reasonable in amount.

[F4(1A) Costs recoverable [F5in respect of a child] under this rule are limited to—

(a)costs F6... which have been assessed by way of detailed assessment pursuant to rule 46.4(2); F7...

(b)costs incurred F8... by way of success fee under a conditional fee agreement or sum payable under a damages based agreement in a claim for damages for personal injury where the damages agreed or ordered to be paid do not exceed £25,000, where such costs have been assessed summarily pursuant to rule 46.4(5) [F9; or]

[F10(c)costs incurred where a detailed assessment of costs has been dispensed with under rule 46.4(3) in the circumstances set out in Practice Direction 46.]]

(2) Expenses may include all or part of—

(a)[F11a premium in respect of a costs insurance policy (as defined by section 58C(5) of the Courts and Legal Services Act 1990)]; or

(b)interest on a loan taken out to pay [F12a premium in respect of a costs insurance policy] or other recoverable disbursement.

(3) No application may be made under [F13this] rule for [F14costs or] expenses that —

(a)are of a type that may be recoverable on an assessment of costs payable by or out of money belonging to a child or protected party; but

(b)are disallowed in whole or in part on such an assessment.

[F15(Costs and expenses which are also “costs” as defined in rule 44.1(1) are subject to rule 46.4(2) and (3).)]

(4) In deciding whether the [F16costs or] expenses were reasonably incurred and reasonable in amount, the court will have regard to all the circumstances of the case including the factors set out in rule [F1744.4(3)] [F18and rule 46.9].

(5) When the court is considering the factors to be taken into account in assessing the reasonableness of the [F19costs or] expenses, it will have regard to the facts and circumstances as they reasonably appeared to the litigation friend or to the child’s or protected party’s legal representative when the [F20cost or] expense was incurred.

(6) [F21Subject to paragraph (7), where] the claim is settled or compromised, or judgment is given, on terms that an amount not exceeding £5,000 is paid to the child or protected party, the total amount the litigation friend may recover under paragraph (1) must not exceed 25% of the sum so agreed or awarded, unless the court directs otherwise. Such total amount must not exceed 50% of the sum so agreed or awarded.

[F22(7) The amount which the litigation friend may recover under paragraph (1) in respect of costs must not (in proceedings at first instance) exceed 25% of the amount of the sum agreed or awarded in respect of—

(a)general damages for pain, suffering and loss of amenity; and

(b)damages for pecuniary loss other than future pecuniary loss,

net of any sums recoverable by the Compensation Recovery Unit of the Department for Work and Pensions.

(8) [F23Except in a case to which Section II, III or IIIA of Part 45 applies, and a claim under rule 45.13 or 45.29J has not been made], no application may be made under this rule for a payment out of the money recovered by the child or protected party until the costs payable to the child or protected party have been assessed or agreed.]]

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