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Costs and Litigation Funding Newsletter May 2016

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Andrew McAulay’s insight into Fixed Costs.

There remains a great deal of media attention on the issue of fixed costs. It appears that the government is still receptive to increasing the scope of fixed costs. Developments on the issue of fixed costs in medical negligence cases are being delayed by the EU referendum.

Many experts now predict that it will not be until October 2017 at the earliest, that any new fixed costs scheme will be rolled out. It does seem to be accepted that the threshold of £250,000.00 is unrealistic and that there should be a gradual move towards that figure rather than an immediate move.

We will keep you up to date with developments.

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

 

How to approach the costs associated with an interim hearing?

Only the costs of foreseeable interim applications require inclusion in the budget, the costs of any other interim applcations are expected to be summarily assessed. 

What happens to those costs if the court refuses to summarily assess them and defers them to detailed assessment? This can create a litigation risk at detailed assessment. An opportunity is created for the paying party to argue that these costs were indeed included in the budget; or alternatively the budget should have been revised to include those costs.

This ‘risk’ can be easily avoided. Request that the court includes within the order for costs, that the costs are either:

• ‘subject to detailed assessment and are in addition to the budget’, or alternatively
• ‘subject to detailed assessment and fall outside the scope of the budget.'

An order in the above terms makes it abundantly clear that the costs of any interim application are in addition to the budget and the difficult ‘good reason test to depart from the budget’ can be avoided.

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

 

Hot Off The Press – an update on the assignment of CFA’s

When entering into a CFA, solicitors should ensure that, if it is intended to cover all work done in relation to the claim (including before the date of the CFA), it includes an express clause stating that it is retrospective. You can read my full article on this topic here.

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

 

Save the date: 8 June 2016

We are hosting a breakfast seminar on 8 June 2016 in conjunction with the Leeds Law Society and Kings Chambers. You will have the opportunity to pose questions to an expert panel of Counsel, Lawyers and Costs Lawyers, the focus will be ‘fixed costs in litigation’ following Lord Justice Jackson’s recent recommendations.

The seminar is being run by the Leeds Law Society, click here to book your place. We look forward to seeing you there.

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.