Jackson favours the costs lawyer?

Costs lawyers have emerged as one of the winners in the Jackson shake-up of civil litigation.

They are in greater demand than ever before as the Jackson reforms and the Mitchell case have boosted the significance of budgeting, according to the Association of Costs Lawyers’ (ACL) annual survey of its members.

Nearly six in 10 respondents to the survey (59%) have expanded their practices as a result of the reforms, with half taking on new staff as a result.

Nearly three-quarters of the 102 respondents (72%) said the demand for costs budgeting had increased “significantly" in the past year, with 52% expecting more of the same over the next 12 months. 

Asked how the budgeting regime was working, two-thirds said it had brought costs lawyers’ skills to the fore. Some 45% replied that it depended which judge they were before, while 43% found that solicitors remain in denial or unaware of the demands.

In response to the reforms, costs lawyers are focusing on multi-track cases over the fast-track. Some 40% of costs lawyers have diversified into other areas, while one fifth are looking for mergers or acquisitions.

In 2013, 71% of costs lawyers predicted that the Jackson reforms would discourage solicitors from taking on less straightforward cases, and this year some 30% said it had actually happened. Nearly half of respondents expected the reforms to discourage claimants, but the 2014 poll found that only 18% and 23% of costs lawyers respectively said they had had that effect.

Sue Nash, ACL chair, says: “While the results show that the Jackson reforms have not damaged civil litigants’ access to justice as much as had been feared, they also emphasise that there is no room for complacency. It is clear that some claimants are being turned away from seeking justice, and it is the responsibility of all of us to ensure that the system adapts to ensure that all of those with a valid claim have the support to bring it.”