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27 June 2012
Issue: 7520 / Categories: Legal News
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The cost of Jackson

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.”

Issue: 7520 / Categories: Legal News
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MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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