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Costs and Litigation Funding Newsletter - February 2019

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Upcoming seminars 

We have a few seminars coming up …

We will send the invitations in due course.
 
In addition, we are always talking about key legal costs developments and what we are up to on our twitter account (@ClarionCosts), please follow us if you want to be kept up to date between our monthly newsletters.

A reminder for defamation lawyers 

In November 2018, the Ministry of Justice announced that it had decided to abolish the recoverability of success fees (under Conditional Fee Agreements) inter partes from 6th April 2019. However, the recoverability (inter partes) of ATE insurance premiums would not change.
 
It is envisaged that this change will apply to cases started after 6th April 2019. In order to be able to seek recovery of a success fee inter partes, you should proceed to enter into any Conditional Fee Agreement with your clients as soon as possible and definitely before 6th April 2019. 
 
Please contact Andrew McAulay on 0113 336 3334 or at andrew.mcaulay@clarionsolicitors.com if you have any questions.

Confused by QOCS? A brief summary of everything you need to know… 

Qualified One way Costs Shifting (QOCS) was introduced in April 2013 for personal injury matters and it is essentially a rule that means a successful defendant cannot recover their costs from an unsuccessful claimant except in specific circumstances (such as the claim being fundamentally dishonest).
 
2018 saw three decisions of interest: one from the Court of Appeal, and two County Court decisions that conflicted each other. It is likely that the issues in the County Court decisions will be tested again, hopefully with binding authority.
 
The full blog about these decisions is available on our website.
 
Please contact Joanne Chase on 0113 336 3327 or at joanne.chase@clarionsolicitors.com if you have any questions.

The new statement of costs goes live on 1st April 2019 

Further updates have been published regarding the new statement of costs, following on from our January newsletter. The pilot scheme will operate from 1st April 2019 to 31st March 2021 and will apply to all claims in which costs are to be summarily assessed, whenever they were commenced. There will be two statements of costs: the N260A - when the costs have been incurred up to an interim application and the N260B - when the costs have been incurred up to trial. The N260 will be available in paper/pdf form and in electronic form. Parties are able to use the paper/pdf form only; however if they use the electronic spreadsheet form this must be filed and served in paper form and electronic means. The format has changed and the document schedule now requires the time entries to be dated.
 
In cases which have been subject to a costs management order, any party filing the form N260B must also file and serve the precedent Q (which is a summary that details any overspend/underspend for each phase of the budget). Now that the court can identify overspends in the budget, will this additional layer of information result in more costs being summarily assessed and less detailed assessments? Will this assist with applications for payments on account? Will we see the N260B being used at trials that are listed for more than one day, to demonstrate that there hasn’t been any overspend in the budget and resultantly the budgeted costs being allowed in full? Possibly, but only if the incurred costs are identified separately to the estimated costs; please see my earlier blog for a more detailed analysis in that regard.

Read the full blog here.

Please contact Sue Fox on 0113 336 3389 or at sue.fox@clarionsolicitors.com if you have any questions.

 

Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.