News

LSC ploughs on with “flawed” VHCC scheme

The very high cost case (VHCC) panel of solicitors and barristers has been launched by the Legal Services Commission (LSC) amid calls from the Bar to scrap the existing scheme and create a new one. The new scheme, which will see panel members bidding to undertake some of the highest paid criminal cases, was thought to be under threat after only about 110 barristers, out of the 2,300 to whom contracts were offered, signed the revised contract. However, the LSC issued amended contracts which allow solicitors to instruct non-panel advocates if no panel advocate is available. Solicitors’ firms will negotiate their fees, although the LSC refuses to pay extra for nonpanel advocacy services. Joy Merriam, chairman of the Criminal Law Solicitors’ Association, says the main concern for panel solicitors is whether they will be able to obtain suitable counsel for their trials. “There is naturally frustration with the Bar who signed and agreed to be part of firms individual tenders and then refused to sign the contract documents although there had been no change in rates in the meantime. Solicitors are now in the position of having to negotiate with individual barristers to take the cases but cannot offer more than the contract rates, which counsel have stated are unacceptable.” Law Society president Andrew Holroyd says: “The solicitor firms involved in these matters are highly experienced and we have complete confidence in the judgments they will exercise in the instruction and selection of advocates. This is clearly something that will need to be closely monitored.” The Bar says the new contract puts the public interest at risk and damages timely and cost-effective VHCC management. Bar chairman Tim Dutton QC says: “The LSC scheme is flawed and serves neither the interests of criminal justice nor the taxpayer. These cases require the most experienced and able barristers for what are the most complex cases which come before the criminal courts. As we have repeatedly said to the LSC, and to ministers, we are prepared to work with them to help to design a scheme which attracts and rewards the most able and efficient advocates and which does so within the financial constraints imposed.” Meanwhile, with barristers refusing to sign, solicitor advocates are cashing in: the number of accepted contracts has risen from 26 to 93.

The Solicitors’ Association of Higher Court Advocates chairman, Tim Lawson-Cruttenden, says the VHCC regime offers excellent opportunities for solicitor-advocacy. “There are over 200 solicitor advocates who can conduct ‘panel cases’ as members of their respective firms. This enables solicitor-advocates to provide a one-stop service in VHCC,” he adds.

Ceasefire called on unified civil contract

The stand-off over the civil unified legal aid contract is over after the Law Society, the Legal Services Commission (LSC) and the Ministry of Justice (MOJ) hammered out a deal.

The agreement will see the Law Society dropping planned court action over the contract in exchange for various guarantees and benefits wrung out of the government. These include increased rates for some categories of legal aid work, a review of the practices and procedures relating to contract compliance audits, an LSC promise not to seek to recoup historic unrecouped payments on account over six years old where the amount outstanding is less than £20,000, and a right to undertake remainder work on the no-fault termination of a contract. Legal Aid Practitioners Group chairman Roy Morgan says: “We welcome with caution the financial benefits agreed, in particular the approach to un-recouped payments on account which was an issue causing our member firms a high level of administrative burden and financial anxiety.”

The full implementation of best value tendering (BVT) for mainstream civil legal aid services will also be delayed until 2013, the introduction of any BVT scheme for criminal defence services deferred until July 2009 and further family fee changes for solicitors not implemented until April 2010.

The MOJ and the LSC have also pledged not to challenge the decision of the Court of Appeal in favour of the Law Society’s arguments that cl 13.1 of the unified contract is incompatible with the Public Contracts Regulations 2006. The civil unified contract is now expected to run until April 2010, while the LSC will be working with TLS and others on the likely content of future contracts, with plans to undertake a full consultation later this year.

Des Hudson, Law Society chief executive, says: “Our talks with the LSC and MOJ have not only helped ensure legal aid will receive vital financial support, they have also shown that we can work together in an effort to establish a more balanced system.”