Ministry of Justice faces backlash for proposed fixed costs

The Association of Costs Lawyers is disappointed with the Ministry of Justice’s response to last August’s consultation on changes to the fixed recoverable costs (FRC) regime. In particular, the introduction of fixed costs for assessments. 

ACL vice-chair David Bailey-Vella says: “We strongly reject the notion that such work, requiring a very high level of experience and expertise, can be correctly served by a condensed assessment procedure and where the proposed costs (£500) are nominal at best.” 

“We note that the Ministry of Justice announcement does not mention the level of costs and we will be asking the Civil Procedure Rule Committee to set them at a more realistic level.” 

“A survey of ACL members said £500 was significantly below what would be reasonable for the amount of work that is likely to be required in the average FRC dispute, let alone the significant shortfall that there would be in more complex disputes.” 

“The ACL argues instead for an escalating and significantly higher cap on costs depending on the value of the claim.” 

While the majority of ACL members agreed with introducing fixed costs for issuing part 8 costs-only proceedings, they again said the proposed level (£300 for a claimant and £150 for a defendant) was far too low for the work required. The ACL will also be urging the CPRC to address this. 

David Bailey-Vella adds: “Such proceedings are not issued on the sole basis that it is another form of costs building. Instead, part 8 costs-only proceedings are issued because there is a fundamental disagreement between the parties regarding the amount of costs in issue and that this is the only means available to the parties to obtain a court assessment to resolve it.” 

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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.