In a groundbreaking development, the Ministry of Justice (MoJ) has shaken up the legal landscape by announcing the end of cost incentives for defendants who prolong cases until the eve of trial. This move, outlined in a series of amendments to fixed costs rules, aims to streamline legal processes and encourage timely settlements.
The MoJ’s recent announcement signals a paradigm shift in the approach to costs and fees in legal proceedings. Addressing concerns raised by the Bar Council and the Personal Injuries Bar Association, the government has revised fixed costs rules for civil claims up to £100,000. Notably, defendants who settle or vacate a claim up to one day before trial in the fast track will now be able to recover 100% of the advocacy fee, fostering a more conducive environment for settlement. For cases settled two days prior, a recovery of 75% of the advocacy fee is applicable.
In the intermediate track, claimants can recover 75% of the fee when settling or vacating a case up to five days before trial. This progressive adjustment in fee recovery, welcomed by Bar Chair Sam Townend KC, reflects a long-overdue recognition of the need for barristers to receive reasonable compensation for their work. Townend emphasizes that the costs regime should facilitate, not impede, settlement efforts and reduce backlogs in county courts.
The government’s commitment to uprate fees in line with inflation, resulting in a 23.5% increase, is another notable aspect of these reforms. However, the extension of fixed costs to include clinical negligence claims, even when both breach of duty and causation are admitted, has sparked debates within the legal community. The MoJ acknowledges the concerns raised during its consultation, with a significant focus on clinical negligence. Despite calls to exclude clinical negligence claims, the government has maintained its position, clarifying that fixed costs will only apply when admissions of liability are made in full in the pre-action protocol letter of response.
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