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Costs and Litigation Funding Newsletter July 2016


Andrew McAulay’s insight into Fixed Cost

The burning issue of the introduction of fixed costs has remained quiet over the last 4 weeks.

The recent change of Prime Minister, the cabinet overhaul and the appointment of Liz Truss as Justice Secretary and Lord Chancellor, has resulted in many experts suggesting that this will create further delay in the publication of any consultation/s. The rumour mill is that there is likely to be a consultation next year in relation to fixed costs for Industrial Deafness claims. Hopefully, the Ministry of Justice will clarify the position on fixed costs shortly, so that law firms can plan for any change.

We will keep you posted with any developments.

Any questions? Please contact me at andrew.mcaulay@clarionsolicitors.com or call on 0113 336 3334.


Sue Fox's Budget Update

The changes to the CPR which were made on 6 April 2016 in respect to costs budgets relate only to proceedings that were issued after 6 April 2016.  These changes are important, with the most essential one relating to the timing of when the budget is filed and served.

For proceedings issued after 6 April 2016, the budget will require filing 21 days before the CMC; or with the directions questionnaire if the value of the claim is worth less than £50,000.

For further information regarding all the budget relevant amendments to the CPR please click here.

A timely reminder regarding the importance of filing the budget on time can be seen in the case Jamadar –v- Bradford Teaching Hospital NHS Trust CA 21/07/16. The Defendant admitted liability following which the court entered judgment against the Defendant and revoked the notice of allocation. The Claimant failed to file a budget before the CMC which resulted in the court reducing the Claimant’s budget to court fees.  For further details regarding this case please click here.

Any questions? Please contact me at sue.fox@clarionsolicitors.com or call on 0113 336 3389.


Matthew Rose - Legal Update

In DB UK Bank Ltd v Jacobs Solicitors [2016] EWHC 1614 (Ch) it was held that a CPR 36 was a counter offer, and had the effect of rejecting an earlier non-CPR 36 (Calderbank) offer. Accordingly, once the CPR 36 offer was made the previous Calderbank offer could no longer be accepted. Counter offers (whether CPR 36 or not) should only be made where the offeror understands and accepts that any previous non-CPR 36 offer will no longer be capable of acceptance, and the attendant costs consequences. 

Any questions? Please contact me at matthew.rose@clarionsolicitors.com or call on 0113 222 3248


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