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13 September 2023
Issue: 8040 / Categories: Legal News , Costs , Procedure & practice , Judicial review
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Lawyers call for a pause on fixed costs

With less than two weeks to go before the extension of fixed recoverable costs (FRC), costs lawyers have urged a six-month delay on the basis the current plans are ‘piecemeal and unreasonable’.

The FRC extension to cases valued up to £100,000 is due to begin on 1 October. However, the Ministry of Justice (MoJ) is still consulting on aspects such as whether costs on assessment and certain clinical negligence cases should be included, with any resulting reforms being implemented in April 2024. The Association of Costs Lawyers (ACL) warned this six-month hiatus between the reforms going live and further reforms being added would result in a basket of cases where different rules applied.

The ACL also wants clinical negligence excluded from the new rules until the Department of Health and Social Care’s separate FRC scheme for cases worth up to £25,000 has been published.

ACL chair Jack Ridgway said: ‘Irrespective of our opposition to the FRC extension on principle, it is clear that the government’s piecemeal approach to reform is only going to cause more problems than it purports to solve.

‘It fails to give the legal market sufficient time to plan, prepare and adapt to what will be a significant upheaval. The MoJ needs to fix the Solicitors Act 1974 before tipping a new load of cases into the system.’

In August, the Association of Personal Injury Lawyers (Apil) formally launched judicial review proceedings against the inclusion of clinical negligence claims.

The Bar Council was due to meet with MoJ officials this week about its concerns, namely, it is not possible to recover the advocacy fee for preparation and advice if the case settles or is vacated shortly before trial. Moreover, the fixed advocacy fee has not kept pace with inflation.

Sam Townend KC, vice chair of the Bar Council, said: ‘There are aspects of the reforms that remain unreasonable and arguably irrational.

‘The costs regime should help, not hinder, settlement and getting the backlog down.’

Townend hinted at a potential legal challenge from the Bar Council, stating his hope the government could reflect ‘so we can avoid the need for judicial review’.

MOVERS & SHAKERS

Constantine Law—Anita Vadgama

Constantine Law—Anita Vadgama

New senior partner hire at consultant-led employment / regulatory law firm

Ward Hadaway—Emma Swann & Jill Donabie

Ward Hadaway—Emma Swann & Jill Donabie

Firm adds two partners to growing education practice

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

Trio of newly qualified solicitors strengthens Worcester office law firm

NEWS
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
The treasury has sought to reassure the legal profession over concerns about cost, bureaucracy and independence when the Financial Conduct Authority (FCA) takes over regulation of anti-money laundering compliance
One out of two barristers has come under pressure from clients to act unethically, according to the results of this year’s Barristers’ Working Lives survey
The Court of Appeal has held the Competition Appeal Tribunal (CAT) was wrong to set aside a Competition and Markets Authority (CMA) decision on unfair pricing of phenytoin, an epilepsy drug
A flagship employment law reform is due to come into effect on 1 July, extending unfair dismissal rights to employees after six months in their job instead of two years
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