The
government is now consulting on the introduction of fixed recoverable fees in
all Clinical Negligence cases with a value up to £250k. That will catch some
very substantial cases involving severe disability.
It is no
surprise that the move is justified on the basis of criticism of those law
firms who represent victims. In a report mentioned by Litigation Futures the
Department of Health says –
“in the experience of the [NHSLA], significant costs are
often incurred by claimant lawyers in the pre-litigation and pre-notification
period and are not subject to costs budgeting requirements. There is also
evidence of claimant solicitors attempting to claim costs well in excess of the
current guideline hourly rates, and considerably higher than the NHSLA pays its
defence solicitors.”
http://www.litigationfutures.com/news/government-targets-100m-savings-fixed-fees-clin-neg-cases-250k
I have
mentioned before that it is inappropriate for the organization which represents
the NHS to try and control the level of legal costs which they have to pay.
They are clearly conflicted. Remember they are only paying anything in cases where liability is proven or
admitted. A case involving awards up to £250k means life changing injuries.
Now I need
to say that I am not particularly worried by the likelihood of fixed fees in straightforward
cases. I have long suspected that they
were inevitable especially as costs budgeting seems to have been a shambolic
and expensive experiment. Fixed fees are now widely used in commercial
litigation and transactions. Payment by the hour is perceived as a reward for dragging
cases out, particularly those which are not complex. But many cases up to £250k
will be very complex.
What is
clear, is that this is an attempt to reduce the number of genuine claims and the amounts payable to victims. If
the NHS does not have to pay full legal costs in those cases where they are
clearly at fault, it is the victims who will have to pick up any shortfall.
The NHSLA
need to review their own conduct. I have started court proceedings in two cases, in the last month, where the NHS failed to
respond to a letter of claim within the four months set out in the pre action
protocol. In both cases they have subsequently admitted liability. The legal
costs are now much higher then they would have been. Why is that the victim’s
fault?
It is also
reported today that the NHSLA routinely fail to make interim payments to
victims –
Many cases
are aggressively contested and then settled late in the day for modest damages
and huge legal costs. If these cases were resolved at an early stage there
would be massive savings.
We have
seen a developing pattern over the last few years where victims, and their
representatives, are attacked as a prelude to the introduction of measures designed
to shrink access to justice. I suspect that some form of fixed fees is
inevitable across all civil litigation. But this has to be based on sensible
and commercial discussions and not inflammatory rhetoric.
I think the fees is a welcome measure to check related blunders
ReplyDelete