A hike in court fees would encourage more mediation in costs disputes, reports William Gibson
There are rumours on the grapevine that the percentage-based court fee for costs assessments will return. Before April 1999 there was a major incentive for parties in litigation to settle the resulting costs claim by negotiation or mediation. Referring the matter to court for adjudication on a fair and reasonable costs figure attracted a taxing fee of 7.5% of the total value of the bill, half of which was paid in advance when the papers were lodged in court.
The Civil Procedure Rules (CPR), surprisingly, abolished this lucrative source of revenue and replaced it with a flat fee, originally £160 in the High Court, currently £600. Suddenly bills in seven-figure amounts, which would have attracted an additional payment in excess of £75,000 to have a court assessment, could go through the same process for a nominal sum. Now, when even cases which settle before action can have costs-only proceedings and assessments, costs judges are again fully occupied. A
