The Jackson reforms will lead to a rise in the number of costs disputes between solicitors and their clients, as well as demand for help with costs management, specialist costs lawyers have predicted.
Satellite litigation may be necessary to work out the new rule on proportionality in costs, the Master of the Rolls has said, but it will be a “very small price to pay”. Lawyers were also warned that if they fail to submit a budget from next April, then it will by default comprise only court fees.
The government today executed a major U-turn on raising the small claims limit for personal injury claims, having announced three months ago that it was not going to do so.
Ombudsman tells lawyers: sort out your pricing or risk losing work to "nakedly commercial enterprises"
Lawyers must provide clearer pricing information to their clients or risk losing out to new entrants to the market, the Legal Ombudsman (LeO) has warned. LeO today issued a report on the problems issues around cost causes consumers, accounting for up to a quarter of all of its investigations.
The way solicitors act for children in small claims is set to change dramatically following a Court of Appeal costs ruling last week, which the court itself recognised could discourage them from acting at all.
Our latest news round-up reports on an apology over the sudden change in the Legal Ombudsman’s address, which affects all lawyers, a unique agreement between a law firm and a barrister, a crucial ruling on interest on costs, and the exit of the CLC’s chief executive.
An investigation into the benefits of cross-examination and disclosure could be next on the costs reform agenda, the Master of the Rolls has indicated. At the same time, an interim report into the national costs management pilot has found signs that it is producing benefits.
The government’s plans to reform the county courts have attracted criticism from both claimant and defendant lawyers as well as costs specialists – albeit for different reasons, with the lack of detail a particular bugbear.
The government is expected to announce on Thursday that the small claims limit will be doubled to £10,000, although the limit for personal injury cases will remain at £1,000, Legal Futures has learned. Extension of the RTA portal should also be part of the package.
The dispute over Leigh Day & Co’s £105m costs bill in the Trafigura litigation has settled before it could reach the Supreme Court, it has emerged, leaving costs specialists frustrated that the question of the date from which interest on costs runs remains unresolved.