Costs

The Civil Justice Council’s predictable costs working party, representing all sides of the costs industry, is nudging its way towards proposing fixed, or predictable, costs for cases which settle without proceedings being issued. It appears that these constitute about 95% of the costs which give rise to dispute. The scheme would apply to road traffic accident cases only, with the costs fixed in bands of £2,500 according to the value of the settled claim, up to £10,000. There would be guideline disbursements, success fees and insurance premiums. If a claimant accepted the guideline costs, they would be payable within 14 days. If the claimant did not accept, he could request a detailed assessment, but if the costs assessed did not exceed the guideline figures, the claimant would have to pay the defendant’s costs of the assessment. The deliberations of the working party will be considered at the Civil Justice Costs forum to be held on 12–14 December, with a view to making recommendations to the Master of the Rolls.