header-logo header-logo

Fixed costs proposals for clinical negligence split opinion

01 February 2017
Issue: 7732 / Categories: Legal News
printer mail-detail

Lawyers respond to Department of Health’s consultation on FRC for clinical negligence

Lawyers have given a mixed reaction to proposals to introduce fixed recoverable costs (FRC) for clinical negligence claims valued up to £25,000.

Health Secretary Jeremy Hunt this week published a 12-week consultation, Introducing Fixed Recoverable Costs in Lower Value Clinical Negligence Claims, setting out the proposals. The Department of Health previously consulted on the principle of FRC, in 2015.

The scheme would be set out in Civil Procedure Rules. The consultation notes that, in claims between £1,000 and £25,000, recoverable claimant costs accounted for more than 220% of damages awarded. It points out that the cost of clinical negligence rose £0.3bn to £1.5bn in the 12 months up to 2015/2016, and that legal costs accounted for more than one third of this figure.

The consultation asks for views on whether FRC should be mandatory, how rates should be calculated and the treatment of expert witnesses. Acknowledging concerns that FRC might curb access to justice for low value claims, the consultation states: “Our proposals aim to ensure that patients maintain access to justice by streamlining the system and incentivising earlier resolution of such claims, setting FRC rates at the right level and considering appropriate exemptions to the proposed FRC scheme.”

Agata Usewicz, head of clinical negligence at Hodge, Jones & Allen, said: “Many practitioners will be relieved that fixed recoverable costs will be capped at £25,000, rather than the £250,000 which had been mooted prior to the consultation being released.

“However, there remains a very real risk that vulnerable and already disadvantaged groups of people will simply not be able to access justice.” Usewicz said fatal claims, still-births, claimants lacking mental or legal capacity, and claims where the client has a short life expectancy must be exempted to preserve access to justice. 

Neil Sugarman, president of the Association of Personal Injury Lawyers (Apil), said the fact the government had “toned down” its original plans would come as a relief to injured patients. 

“A fixed fee regime for more straightforward cases could be workable but the priority has to be the development of a quick and efficient system,” he said.

Mike McKenna, a member of the Forum of Insurance Lawyers (FOIL) clinical negligence sector focus team, said FOIL welcomed the consultation into fixing costs in clinical negligence claims, where possible: “Whilst the debate will rightly cover all sides of the arguments, any measures which can streamline the process, support timely resolution of claims whilst achieving savings for the NHS and contribute to lesson learning is to be welcomed; it also correctly reflects a need to streamline the litigation process, in line with other personal injury claims, where possible.”

The consultation ends on 1 May.

Issue: 7732 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

NLJ Career Profile: Mike Wilson, Blake Morgan

NLJ Career Profile: Mike Wilson, Blake Morgan

Mike Wilson, managing partner of Blake Morgan chair of the CBI’s South-East Council, reflects on his career the challenges that have defined him

Clarke Willmott—Alexandria Kittlety

Clarke Willmott—Alexandria Kittlety

Partner joins commercial property team in Birmingham

Birketts—Will MacFarlane & Sarah Dodds

Birketts—Will MacFarlane & Sarah Dodds

Family team expands with double appointment in Bristol office

NEWS
Lawyers have expressed dismay at the Chancellor Rachel Reeve’s decision to impose a £2,000 cap on salary sacrifice contributions
NLJ is inviting its readers to take part in this year’s annual reader research, a short survey designed to help shape the future direction of the magazine. The questionnaire consists of just eight quick questions and offers an opportunity for legal professionals to share their views on the content, coverage and issues that matter most to them.
The Law Society has urged regulators not to ban the term ‘no win no fee’, as the profession contemplates measures to prevent a disaster like the SSB Group collapse from happening again
The legal profession's leaders have mounted a robust defence of trial by jury, following reports that Justice Secretary David Lammy is considering restricting it to rape, murder, manslaughter and other cases that are in the public interest
CILEX (the Chartered Institute of Legal Executives) has been granted permission to appeal Mazur, a decision which has caused consternation among litigation firms
back-to-top-scroll