Showing posts with label LASPOA. Show all posts
Showing posts with label LASPOA. Show all posts

Tuesday, 21 November 2017

The devil in the detail


It is 9 years since Lord Justice Jackson first got the call from the Master of the Rolls to begin his Review of Civil Litigation Costs which made recommendations largely brought into law by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO).

While debates about the post-LASPO regime persist, few would question Jackson’s tenacity. This summer, his latest “supplemental” review, caps months of speculation on the prospect of fixed recoverable costs being extended to cover a much wider range of cases. The implications for the legal profession and for public access to the justice system will still be significant, but his latest recommendations represent a significant step back from earlier proposals.

In January 2016, Jackson urged ministers to fix costs for claims up to £250,000 but his latest review proposes only to fix costs for all claims up to £25,000. As always, the devil will be in the detail, but it is encouraging that Lord Jackson has acknowledged the complexity of clinical negligence cases, so that people who have been harmed by the public health system are not subsequently let down by the justice system.

His review recommends that a bespoke process is established for clinical negligence cases that fall beneath the £25,000 threshold and proposes that a joint Department of Health and Civil Justice Council working group be set up to gather views from both claimant and defendant solicitors. The outcome will be vital to the fairness of any fixed costs regime and to avoid tipping the scales in favour of defendants (most often NHS Resolution) who have already proved willing to play the system to avoid meeting the liabilities presented to them in court. Lord Jackson hasn’t entirely abandoned his aspiration to see fixed costs in much higher value cases, however.

His latest report also sets out plans for a pilot that would provide an optional, streamlined procedure for business and property cases up to £250,000, with fixed costs up to £80,000. Again, how this is implemented will determine both how fair and how successful any further expansion of the fixed costs regime may be, not least in the resources courts will have to deliver swift er and more cost-effective justice.

Fixed recoverable costs are, without doubt, here to stay and likely to be extended. They can offer benefits to all parties in streamlining and speeding up access to justice, but they could also reduce it, so any expansion must be carefully monitored.

Wednesday, 23 January 2013

A time for change... it is indeed!

The recent report - A time of change: solicitors' firms in England and Wales - published jointly by The Law Society, Legal Services Board and the Ministry of Justice examines the results of a comprehensive survey conducted with solicitors firms to provide a “benchmark of the profession”.

The report leads us to conclude that in the light of the recession, evolution of technology, changes to funding and legal aid and further challenges brought about by the LASPO Act and associated reforms -  the industry needs to adapt in order to move forward.

The report highlights a market shift where the larger specialist firms will look to grow and thrive in this environment. Yet this could be at the expense of the smaller firms who will not be able to compete without the benefits of economies of scale. In fact the report finds that “smaller and medium-sized firms are significantly more likely to have reported decreases in turnover”. One of the areas the firms will be hardest hit is in legal aid where funding is being cut right back by the government courtesy of the LASPO Act due to become law in April. The report shows that 23% of the firms included are concerned about “adapting to the changes in legal aid” and “31% of firms currently working with legal aid funded cases were considering withdrawing from one or more areas of legal aid in the next three years”.

With increasingly limited choice owing to the market shift and reduced access to justice, consumers too will suffer. Fortunately for those with BTE  legal protection an expert panel of solicitor’s firms has already been assembled by the provider. With a range of firms available according to the dispute, the customer will be well placed to protect their legal rights. At ARAG, we ensure that our panel solicitors not only have specialist subjects but are also spread far and wide across the country and we ensure service standards through our panel.

ARAG are committed to the ATE market and we are considering options for new products in light of LASPOA. Our message is that in the new legal world we will continue to support access to justice, working with panel and non-panel firms on behalf of those with BTE and supporting others along the ATE route in an environment which it appears will be less welcoming to those wishing to protect their legal rights.

Find out more about legal insurance on our website: www.arag.co.uk