Lord Justice Jackson has published the final report on his review of civil litigation costs. His key findings and recommendations include:
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Proportionality - the costs system should be based on legal expenses that reflect the nature/complexity of the case;
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Success fees and after the event insurance premiums to be irrecoverable in Conditional Fee Agreements cases as he believes these are the greatest contributors to disproportionate costs;
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General damages awards for personal injuries and other civil matters should be increased by 10%;
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Referral fees should be scrapped
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One way costs shifting to be introduced meaning claimants will make a small contribution defendant costs if a claim is unsuccessful thus removing the need for ATE insurance;
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Fixed costs to be set for fast track cases up to a claim value of £25,000 thus providing certainty of legal costs;
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Establishing a Costs Council to review fixed costs and lawyers' hourly rates annually, to ensure that they are fair to both clients and solicitors;
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Allowing lawyers to enter into Contingency Fee Agreements, where lawyers are only paid if a claim is successful and therefore receiving a percentage of damages awarded;
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Promote BTEl insurance.
We will have to wait and see if the whole market is turned on it's head just 10 years after it was introduced! To see his full report download it here or to watch an interview click here to view part 1 and part 2 here.