header-logo header-logo

04 February 2016
Issue: 7685 / Categories: Legal News
printer mail-detail

Fixed costs cause alarm

Lord Justice Jackson stirs up controversy with latest proposals

Lawyers have given a mixed response to Lord Justice Jackson’s call for fixed costs in all claims valued at up to £250,000.

Sir Rupert, whose 2010 review of civil litigation led to sweeping reforms, made the proposal last week in a speech to insolvency practitioners.

However, Professor Dominic Regan, of City Law School, who describes Sir Rupert’s proposals as “staggering” in their audacity, points out that fixed costs would apply to clinical negligence—“perceived as the safest and potentially most lucrative of injury work”—and would include the fees of counsel.

Writing in NLJ this week, he predicts instructions of counsel will diminish: “In injury, where some fast-track cases are already captured by fixed costs, law firms are increasingly reluctant to involve counsel.”

Prof Regan says that Sir Rupert is convinced that “many legitimate claims are not pursued because of the fear that costs would cripple or annihilate the claimant”.

He adds that Sir Rupert “has long viewed [the hourly rate for determining costs between the parties] as a reward for the incompetent and an incentive to make a meal of everything”.

Bar Council chair, Chantal-Aimée Doerries QC, warns: “Large corporations and governments may well be willing to spend large sums of money—beyond what is recoverable—on legal disputes with individuals or smaller corporations whose costs are fixed at a much lower rate. Lawyers may not take on complicated, low value cases, thus preventing legitimate claims from being pursued.”

However, she praised Sir Rupert’s acknowledgment to build in regular reviews. Law Society president Jonathan Smithers also expressed concern about the impact on access to justice for highly complex cases.

Issue: 7685 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll