Fees to be cut for RTA cases

Lawyers’ fees for road traffic accident cases are to plummet from £1,200 to £500 for claims worth up to £10,000, the Ministry of Justice (MoJ) has said.

The change is due to be introduced to RTA portal claims in April. RTA cases worth up to £25,000 will have a maximum fee of £800.

Fees for employers’ liability and public liability cases—due to be handled through the electronic portal from April onwards—will be capped at £900 for claims worth up to £10,000, and £1,600 for claims worth up to £25,000.

Justice minister Helen Grant says: “We are making changes so claims are handled quickly and efficiently and accident victims with genuine cases can be compensated as soon as possible.

“These changes, along with our wider reforms, will bring more balance to the system, make lawyers’ costs proportionate and in turn create an environment where insurers can pass on savings to their customers through lower premiums.”

She asked for responses to be made by 4 January 2013.

However, Karl Tonks, president of the Association of Personal Injury Lawyers (APIL), says: “We’re appalled by these proposals, which are wholly damaging to the interests of injured people.

“A fee of £1,600 for an employers’ liability case valued up to £25,000 is not at all reflective of the work involved and serves to cut independent legal advice from the system. Alternatively, injured people will have to pay for legal advice out of the compensation that they need.

“Consultation on how the new employers’ liability and public liability systems will operate is still underway and cases have not been openly costed, so how these fees could have been fairly calculated is a mystery.”

APIL has instructed Kingsley Napley solicitors and issued a letter before action to the MoJ with a view to launching a judicial review over the extension of the RTA claims process. The MoJ has until the end of this week (23 November) to respond.

APIL chief executive Deborah Evans said: “We are extremely concerned that the mechanisms which will make the portal extensions work efficiently cannot be put in place in time.”