The Law Society, which launched the case last week, claims the LAA failed to consult the representative bodies, and the LAA may not have enough qualified staff and resources in-house to manage the change. It points to a potential conflict of interest where the LAA is assessing larger bills as it is also the paying party, and argues the costs appeals process is not properly independent as it is controlled by the LAA which also appoints and pays for independent costs assessors.
Law Society president Simon Davis said: ‘Cost assessments are vital in ensuring that when legal aid practitioners send a bill it is carefully scrutinised and they are properly paid for their work.
‘For years, legal aid cost assessments over the value of £2,500 have been conducted by the courts and bills under £2,500 have been assessed by the LAA―a system which has worked well for practitioners and clients alike. Calculating cost assessments can be a complicated process which requires a level of skill and experience, and sufficient time.’
The LAA announced in June that it would bring all assessments in-house from 17 August, on the basis this would speed up the process as claims would no longer need to go before the courts, resulting in faster payments for firms already struggling with cash flow issues during the COVID-19 pandemic. It said it had consulted with ‘representative bodies’ on amendments to the cost assessment guidance.
Davis said the proceedings have been issued on ‘a protective basis’ and invited the LAA to discuss the issue.
The Ministry of Justice was unable to comment while legal proceedings were ongoing.
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