News

The Jackson Report

24/2/2010

The Jackson Report - Lord Justice Jackson has now completed his review of civil litigation costs and his report was published on 14th January. I highlight the main proposals as below:

1. Proportionality. The costs system should be based on legal expenses that reflect the nature and complexity of the case.
2. Success fees and ATE insurance premiums be irrecoverable in CFAs. To offset the effects of this for claimants, general damages awards for personal injuries and other civil wrongs should be increased by 10%.
3. Referral fees in personal injury cases should be banned.
4. Qualified “one way costs shifting”. So long as claimants behave “reasonably” they will only make a small contribution to defendants’ costs if unsuccessful.
5. Fixed costs set in “fast track” (up to £25,000) claims.
6. A Costs Council be established to review fixed costs annually.
7. Allowing CFAs (or “damages based agreements”) in contentious business.
8. Promotion of BTEs legal insurance, encouraging people to take out legal expenses insurance.
The report is over 400 pages long with inter-locking and related consequences. The Law Society has little time to debate, consult, lobby etc. Before it delivers what must be a robust and fact based response to the recommendations.
This is not a Government Report and it will in any event still require statutory changes or Ministerial approval. Jackson appears to have tackled his remit in an intellectual rather than practical way, maybe to stem the flow of the compensation culture of the last 15 years. There will be competing and conflicting views, procedural changes will be inevitable and legal expenses insurance could ultimately replace Legal Aid by say including it with your household and other insurance.