Recently-appointed Lord Chancellor Liz Truss is facing mounting backlash from the profession after unveiling proposals to extend the recoverable costs regime to ‘as many civil cases as possible’, and the roll-out of an online court system to ensure justice for all.
Announced jointly by the Lord Chief Justice, Lord Thomas of Cwmgiedd, the senior president of tribunals, Sir Ernest Ryder, and the new justice secretary, Truss (pictured), last Thursday (15 September), Law Society president Robert Bourns warned the proposal for fixed costs for complex, high value cases is ‘likely to be totally inappropriate.’
Dubbed ‘Transforming our justice system’ by the Ministry of Justice, the radical proposals to court procedures are part of a £1bn programme to modernise the courts in England and Wales.
Bourns added: ‘The society made clear that it supports the principle of fixed costs for lower value and less complex cases, but the application of fixed costs for highly complex and high value cases …will raise significant questions about the ability of many ordinary people to access justice. In particular fixed costs for higher value claims can be prejudicial and disproportionately disadvantage those on lower incomes and the vulnerable.’
Bourns noted that fixed recoverable costs for further civil work has been expected for some time and that fixed costs set at the right level could be appropriate in low-value claims where they can provide greater certainty for both sides in litigation, and avoid protracted disputes about the level of costs.
Other proposed changes includes the roll-out of online courts, which Bar Council chair Chantal-Aimée Doerries QC flagged would raise ‘serious concerns’ when related to civil money claims.
She said the plans could create a two-tier justice system that may result in a system providing a different type of justice to claimants and defendants, depending upon the size of the claims.
The Law Society voiced its concern earlier this year that extending fixed costs to all civil cases valued up to £250,000 represents a tenfold increase on the current limit for many claims.
Speaking to Legal Business, Quinn Emanuel Urquhart & Sullivan partner Ted Greeno said: ‘It’s very early days. It’s unfortunate we have a non-lawyer as Lord Chancellor. Beyond that, it’s too early to say. In terms of fixed costs, I don’t have a particularly strong opinion in low value, personal injury cases. I can see an argument for it but I’m not sure it helps people it was intended to help.’
‘Michael Gove had undone what [Chris] Grayling did but Truss is taking her time learning and finding out. In some ways not doing anything could be a good thing. It’s too early to pass judgment on her. I would like to see the fee hikes reversed – they are causing damage.’
Theresa May’s new government generated controversy in September when Truss appeared to backtrack on her predecessor Michael Gove’s plans to introduce a major prisons bill as part of major social reform.
sarah.downey@legalease.co.uk
For more on Truss’s appointment see: ‘Guest post: The new justice secretary – does it matter that she’s not a lawyer?’
