ACL survey: “Jackson will increase costs disputes”
The number of costs disputes between solicitors and their clients will rise as a result of the Jackson reforms, costs lawyers have predicted.
As of next April, when the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) comes into force, success fees in “no-win, no-fee” cases will no longer be recoverable. Instead, clients will pay their own costs out of their damages and are therefore likely to take a keen interest in the amount of costs their solicitor racks up.
A survey of 137 members of the Association of Costs Lawyers (ACL), published this week, showed 69% thought solicitor-client disputes would rise as a result.
Nearly a third of costs lawyers surveyed thought the Jackson reforms would discourage people from bringing cases, while more than half thought they would discourage solicitors from taking less straightforward cases.
Four out of 10 believe fierce competition will drive down the level of success fees, while nearly a third think costs will become more proportionate, and 42% think they will tilt the playing field in favour of defendants.
The survey uncovered common mistakes and misunderstandings by solicitors when dealing with costs. Failing to keep thorough records was the main complaint, followed by “they think they can do it themselves”. Other complaints included using unqualified costs draftsmen and only calling costs lawyers in when things have gone wrong.
Iain Stark, chairman of the ACL, says: “It is inevitable that solicitor/own client disputes will re-emerge post-LASPO, while the judiciary is emphasising how central costs management will be in the future.
“The truth is that many solicitors have neither the time nor experience to maximise the recovery of their own costs, and this is only going to become more difficult post-Jackson.”
