APIL and Law Society Respond to Fixed Recoverable Costs Extension

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Fixed recoverable costs will be extended in England and Wales in response to the consultation on extending fixed recoverable costs in civil cases, implementing Sir Rupert Jackson’s proposals.

The Lord Chancellor announced that fixed recoverable costs (FRC regime) are to be extended to all cases in the fast track (valued up to £25,000) and, via a new regime, to ‘less complex’ claims valued between £25,000 and £100,000 (intermediate cases).

Cases will be ranked into complexity bands, with the fast track expanded to include ‘intermediate’ track cases, and Judges will be asked to exercise their discretion to ensure that these are properly allocated.

The announcement to extend fixed recoverable legal costs has been met by opposition from a number of groups including the Law Society and APIL.

Opposition to the fixed recoverable costs extension

The Law Society and the Association of Personal Injury Lawyers (APIL) have responded negatively to the plans to extend the use of fixed recoverable costs. Stephanie Boyce, President of the Law Society has urged the government to reconsider their plans to extend the use of fixed costs in civil cases as it would reduce access to justice for many vulnerable claimants.

Boyce stated the following in response to the extension:-

“If the government caps the amount of reasonable costs a claimant can recover then – without safeguards – a deep-pocketed and unscrupulous party could force their opponent to run up legal bills they’ll never recover.

“This could seriously damage the justice system, leaving claimants unable to obtain effective remedy or vindicated defendants out of pocket through no fault of their own.”

She further stated that the legal system had been “reshaped” by the coronavirus pandemic, as well as the Court reform programme amongst a number of other changes since Lord Justice Jackson’s 2017 report, on which the new changes are based.

Claire Green from APIL held a similar view and questioned whether the fixed costs extension provides “genuine access to justice and allow a party to conduct litigation effectively, or do they only work for the privileged few who can afford to pay for litigation irrespective of what they recover from an opponent?”

Matthew Scott from the Association of Consumer Support quoted Lord Justice Jackson by stating:-

“If the costs are too high, people cannot afford lawyers. If the costs are too low, there will not be any lawyers doing the work.”

Scott also stated that he was not surprised the the Government had decided to implement the extension.


How can Recovery First assist?

If your business has been affected by the fixed costs extension and you wish to discuss your options, please do not hesitate to contact us at Recovery First for a confidential chat.

We offer a positive solution to any law firm by helping them exit any legal market whilst remaining solvent, maintaining cash flow, and ensuring they get the most out of their files.

We will provide you with all the advice and support you need, and we guarantee 100% confidentiality for all clients. If you would like to find out more about Recovery First’s process, feel free to get in touch today via email (david.johnstone@recoveryfirst.co.uk), telephone (0845 056 1258) or contact Sally Dunscombe at sally.dunscombe@recoveryfirst.co.uk or 01357 440140.



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