Expansion of Fixed Costs in Civil Litigation

 

In last week’s edition of BCDN, we reported on the Ministry of Justice consultation paperwhich has been described as a ‘vision statement’ for the future of the justice system.[i]

It was confirmed in this report that the Government is planning to invest more than £700 million to modernise courts and tribunals with their ultimate goal being cited as ‘a courts and tribunal system that is just, and proportionate and accessible to everyone – a system that will continue to lead and inspire the world’.

There was an entire chapter of the report dedicated to the civil courts in which the main proposal outlined was the intention to extend fixed fees ‘to as many civil cases as possible’.

The report states:

‘More needs to be done to control the costs of civil cases so they are proportionate to the case, and legal costs are more certain from the start. Building on earlier reforms, we will look at options to extend fixed recoverable costs much more widely, so the costs of going to court will be clearer and more appropriate. Our aim is that losing parties should not be hit with disproportionately high legal costs, and people will be able to make more informed decisions on whether to take or defend legal action’.

These proposals follow calls from the senior judiciary, such as Lord Jackson, to impose fixed fees across the fast-track and ‘lower reaches’ of the multi-track. Lord Jackson in particular recommended earlier this year that fixed costs should apply to all claims valued up to £250,000. Further details on these proposals can be found in edition 126 of BC Disease News here.

Since this report, the Law Society has hit out at the Government stating that these plans are ‘totally inappropriate’ as limiting recoverable costs on more complex cases would threaten access to justice.[ii] In particular, Law Society president Robert Bourns stated that ‘…fixed costs for higher value claims can be prejudicial and disproportionately disadvantage those on lower incomes and the vulnerable’.

However, he did agree that fixed costs for low-value claims could be appropriate if set at the right level as they can provide certainty for both sides in litigation and avoid protracted disputes about the level of costs.

Alongside these proposals for fixed costs were plans to digitise the courts. The report states:

‘We will speed up resolution as we replace paper and post with digital working: currently, a “fast track” claim with a value between £10,000 and £25,000 takes 11 months to be resolved. Under our new digital model, cases will be handled faster and in a more convenient way, improving the experience for everyone making and defending claims in the civil courts.’

Both the Law Society and the Bar Council have indicated their discontent with these plans and have said they should be treated with caution. It has been suggested that plans to bring courts online would create a two tier justice system that may result in a system providing a different type of justice to claimants and defendants, depending on the size of the claims.

It was said within the report that there would be further consultation on these proposals. We will continue to stay abreast of any developments.

The full report can be accessed here.