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24 January 2008
Issue: 7305 / Categories: Legal News , Legal services , Procedure & practice , Profession
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VHCC contracts under pressure

Profession

The Very High Cost Cases (Crime) Panel is in a state of disarray after the Legal Services Commission (LSC) admitted that “a substantial number of barristers” refused to sign contracts by this week’s deadline.

Following the bid round, the LSC offered contracts to 330 solici­tor firms and 2,300 barristers. The LSC says that virtually all solicitor firms have signed, but that a large number of barristers have decided not to.

Under the new rates the daily advocacy fee for a QC drops from £525 to £476, and for a non-QC presenting a case alone from £330 to £285. Barristers without a contract will not be able to accept instructions on new publicly-funded VHCC cases—those likely to last 41 days or more in court.

In a letter to the Bar Council last week, Richard Collins, executive director (policy) at the LSC, warns that barristers refusing to sign could face legal action.

He wrote: “All that is required for a breach of the Competition Act 1998 is a ‘concurrence of wills’ or…that information supplied by any party is supplied to another with the intention of, or knowledge that, it will facilitate the making of an anti-competitive agreement. Under the Enterprise Act 2002, secrecy concerning the steps taken to enter into an arrangement to limit the supply of services is presumed by practitioners to establish the necessary dishonesty.

“If, as we suspect, a large number of advocates are consider­ing not signing the contract…and do not do so, particularly on a cham­bers basis, it will be an inevitable inference that some intervening event has caused a change of mind since they allowed their names to go forward in solicitors’ tenders.”

He concludes that where this conduct has arisen following discus­sions within the Bar more gener­ally, the case law indicates that a concerted practice may be inferred unless the parties have distanced themselves in writing and by their conduct. Bar chairman Tim Dutton QC says there has inevitably been discussion within the profession about contracts, rates, professional obliga­tions etc, but denies any breach of competition law.

He adds that the way the LSC organised the tender contributed towards the current stand-off, as many barristers—often at short notice—had to allow themselves to be included in a solicitor’s tender or lose all chance of even being able to consider signing a contract.

He adds: “If barristers are declining to sign, it seems likely this is because they are coming to the independent view, having carried out an examination of the proposed contracts (issued in final form as late as 7 January 2008) that the terms are simply not economically viable given the circumstances, nor acceptable on their merits.”

MOVERS & SHAKERS

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Two promoted to partner in property litigation and education teams

Dorsey & Whitney LLP—Peter Knust

Dorsey & Whitney LLP—Peter Knust

Cross-border finance and restructuring specialist joins as of counsel in London

Powell Gilbert—Callum Beamish-Lacey

Powell Gilbert—Callum Beamish-Lacey

IP firm promotes litigator to partnership

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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