Survey indicates growth for costs lawyers

In the legal landscape, the recent year has proven positive for costs lawyers, according to the Association of Costs Lawyers‘ (ACL) annual member survey. The survey shows a strong financial performance for many practitioners, with over half reporting an increase in turnover, and a substantial proportion experiencing growth exceeding 10%. This financial upswing has fostered confidence in the profession, with practitioners optimistic about the impact of expanded fixed costs. 

Despite the recent extension of fixed recoverable costs, the survey highlights a prevailing positive outlook among costs lawyers. Nearly half of respondents anticipate continued disputes under the new regime, while a majority perceives fresh opportunities for professional advancement.  

The survey also reveals the practitioners’ openness to alternative dispute resolution (ADR). A notable case, Hadley v Przybylo [2023] EWHC 1392 (KB), demonstrated the success of court-ordered ADR in resolving budgetary issues efficiently. More than half of costs lawyers view this approach favourably, expressing a desire for its wider adoption. 

While interest in mediation has increased, the survey underscores that ADR’s integration into costs dispute resolution has room for growth. A quarter of respondents have never been involved in mediation, emphasising the need for further promotion and awareness. 

Support for the recommendations of the Civil Justice Council’s costs review is prevalent, with a consensus that guideline hourly rates are due for an update. Additionally, a majority of costs lawyers advocate for tailored costs budgeting, including a ‘costs budgeting light’ approach for claims valued below £1 million. 

An intriguing aspect of the survey is the overwhelming support for costs lawyers to assume judicial roles. Despite the current restriction, a substantial 93% believe that they should be eligible for judicial appointments, underscoring their confidence in their capabilities and expertise. 

In summary, the ACL’s member survey reflects a positive period for costs lawyers, marked by financial growth, adaptability to industry changes, and an eagerness to embrace progressive reforms, including increased involvement in ADR and aspirations for judicial roles. 

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.