FRC, Part 36 and Police Claims: Paying Party Lessons from Collins v Thames Valley Police [2026]

The Senior Courts Costs Office decision in Collins v Thames Valley Police [2026] provides important clarification for defendants dealing with fixed recoverable costs after settlement. The case addresses the interaction between Part 36, post-October 2023 FRC expansion, and police intentional tort claims, all of which frequently arise in modern paying party costs disputes. It is particularly relevant for those defending bills at detailed assessment.

The Central Issue

The substantive claim settled before proceedings were issued. However, costs-only proceedings were later brought under Part 8 after the expansion of fixed recoverable costs in October 2023.

The key question was whether the costs should be:

• assessed on the standard basis, or

• restricted to fixed recoverable costs.

The court also had to determine whether Part 36 wording displaced FRC and whether the inclusion of an intentional tort against the police removed the case from the fixed costs regime.

Part 8 Costs-Only Proceedings and FRC

The Senior Courts Costs Office confirmed that issuing Part 8 costs-only proceedings after October 2023 constitutes the “issue of proceedings” for the purpose of the transitional provisions. That means the procedural step, not the settlement date, determines whether FRC applies.

For defendants, this reinforces the importance of analysing:

• when costs-only proceedings were issued

• whether the case falls within the extended FRC regime

• whether an exemption genuinely applies

These arguments should be raised early in points of dispute

Part 36 Does Not Automatically Disapply FRC

The court confirmed that acceptance of a Part 36 offer providing for costs “in accordance with CPR 36.13 does not contract out of fixed recoverable costs.

The entitlement to costs remains subject to CPR 45 unless there is clear contractual wording to the contrary.

This is significant because receiving parties often argue that Part 36 entitles them to standard basis assessment. The decision confirms that Part 36 does not override the fixed regime.

Intentional Torts and Police Claims

The decision also addressed claims against the police involving intentional torts such as conversion or trespass to goods. Under CPR 26.9(10)(e), such claims are mandatorily allocated to the multi-track, which removes them from fixed recoverable costs.

Importantly, the intentional tort need not be the dominant cause of action, inclusion alone may suffice. For paying parties, this means careful analysis of pleadings is critical before advancing a fixed costs argument.

Procedural Nature of FRC Expansion

The court treated the October 2023 extension of FRC as procedural rather than substantive. That allows the regime to apply even where the underlying claim settled before the reform date, provided costs-only proceedings were issued later.

This strengthens transitional arguments in favour of defendants in ongoing paying party costs disputes.

Strategic Implications at Detailed Assessment

The decision reinforces several key defence principles:

• Timing of proceedings determines FRC applicability

• Part 36 does not disapply fixed costs without express wording

• Police intentional tort pleadings may remove a case from FRC

• Transitional provisions can favour defendants

Where FRC does not apply, defendants should still consider robust challenges based on proportionality, guideline hourly rates, and broader recoverability and conduct arguments.

Why This Matters

Whether FRC applies can dramatically alter exposure. The difference between fixed costs and standard basis assessment may represent a substantial reduction in liability.

This case confirms that defendants must scrutinise:

• procedural timing

• settlement wording

• pleadings

• allocation rules

These are not technicalities — they are exposure-control tools.

Key Takeaways

• Costs-only proceedings issued post-October 2023 may trigger FRC

• Part 36 does not automatically disapply fixed costs

• Police intentional tort claims can fall outside the FRC regime

• Transitional arguments may significantly reduce liability

• Early strategic input improves defence positioning

We act for local authorities, insurers and public bodies in defending costs claims involving fixed recoverable costs, Part 36 and detailed assessment.