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VHCC contracts under pressure

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

NLJ career profile: Liz McGrath KC

NLJ career profile: Liz McGrath KC

A good book, a glass of chilled Albarino, and being creative for pleasure help Liz McGrath balance the rigours of complex bundles and being Head of Chambers

Burges Salmon—Matthew Hancock-Jones

Burges Salmon—Matthew Hancock-Jones

Firm welcomes director in its financial services financial regulatory team

Gateley Legal—Sam Meiklejohn

Gateley Legal—Sam Meiklejohn

Partner appointment in firm’s equity capital markets team

NEWS

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Law school partners with charity to give free assistance to litigants in need

Could the Labour government usher in a new era for digital assets, ask Keith Oliver, head of international, and Amalia Neenan FitzGerald, associate, Peters & Peters, in this week’s NLJ

An extra bit is being added to case citations to show the pecking order of the judges concerned. Former district judge Stephen Gold has the details, in his ‘Civil way’ column in this week’s NLJ

The Labour government’s position on alternative dispute resolution (ADR) is not yet clear

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