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As a claimant solicitor I think this is correct. All of the work that is done to prepare for trial is exactly the same as in a disputed liability case so there is no need for extra work that would take you over the fixed costs that are allowed.

If an argument of FD is made very clearly it is then for the solicitors to make a judgment call. If FD is proven very clearly - bill the client because they failed to comply with their retainer i.e. they have told a pack of lies.

However, honest claimants wrongly tarred with an unproven FD allegation will get stiffed because of the stresses and strains and the possibility of a ruined career. Costs won't compensate for that so my suggestion would be a 30% uplift on general damages.