header-logo header-logo

21 November 2022
Issue: 8004 / Categories: Legal News , Costs , Personal injury
printer mail-detail

Fixed costs delayed

Personal injury lawyers have been given an extra six months’ reprieve on the implementation of the fixed costs regime for civil litigation.

The new regime, under which fixed costs were to be extended to cases valued up to £100,000, was due to start in April. It will now not begin until October 2023 in order to give the legal sector more time to prepare.

Justice minister Lord Bellamy KC made the announcement at the Civil Justice Council national forum last week.

The extension, first recommended by Sir Rupert Jackson’s civil costs review, was proposed by the Ministry of Justice in 2021. However, personal injury lawyers and groups have expressed concerns about the financial viability of running more complex cases through the new regime.

Jack Ridgway, chair of the Association of Costs Lawyers, said the delay was ‘eminently sensible… But the reality is that the eventual rules will still cause a significant amount of satellite litigation.

‘As costs specialists, we are preparing to move from arguing about numbers to arguing about words and particularly which track and band a claim should be allocated to’.

Matthew Currie, chief legal officer at Minster Law, said: ‘We warmly welcome this delay, if the net effect is a more considered and sensible approach to fixed costs going forward, including a regular review mechanism to ensure costs reflect inflation.

‘After a period of turmoil in the sector, driven by reform and external macro factors, we need a period of stability and certainty, so that we can plan effectively to manage the needs of our clients in the post reform world.’

Matthew Maxwell Scott, executive director of the Association of Consumer Support Organisations (ACSO), said: ‘Existing FRC [fixed recoverable costs] have been subject to inflationary pressures for a number of years, eating away at margins and heightening the risk that firms exit the market altogether.

‘ACSO has called for a root-and-branch review of all FRC to standardise uplifts for inflation, including regular review. In civil litigation, costs, rates, fees, damages guidelines, claims tracks and discount rates all interplay with one another, but at the moment they are reviewed and adjusted in silos, at different intervals and often adjusted using different metrics—or simply not at all. This is no way to manage the justice system.’

Issue: 8004 / Categories: Legal News , Costs , Personal injury
printer mail-details

MOVERS & SHAKERS

Gateley Legal—Caroline Pope & Bob Maynard

Gateley Legal—Caroline Pope & Bob Maynard

Construction team bolstered by hire of senior consultant duo

Switalskis—four appointments

Switalskis—four appointments

Firm expands residential conveyancing team with quadruple appointment

mfg Solicitors—Claire Pope

mfg Solicitors—Claire Pope

Private client team welcomes senior associatein Worcester

NEWS
What safeguards apply when trust corporations are appointed as deputy by the Court of Protection? 
Disputing parties are expected to take part in alternative dispute resolution (ADR), where this is suitable for their case. At what point, however, does refusing to participate cross the threshold of ‘unreasonable’ and attract adverse costs consequences?
When it comes to free legal advice, demand massively outweighs supply. 'Millions of people are excluded from access to justice as they don’t have anywhere to turn for free advice—or don’t know that they can ask for help,' Bhavini Bhatt, development director at the Access to Justice Foundation, writes in this week's NLJ
When an ex-couple is deciding who gets what in the divorce or civil partnership dissolution, when is it appropriate for a third party to intervene? David Burrows, NLJ columnist and solicitor advocate, considers this thorny issue in this week’s NLJ
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
back-to-top-scroll