moj extension & lj jackson’s civil costs proposals simon johnson 14 may 2012

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MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

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Page 1: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MoJ Extension & LJ Jackson’s Civil Costs

Proposals

Simon Johnson14 May 2012

Page 2: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MoJ – Key Proposals

Eligible RTA claims - £10k > £25k

EL and PL claims to be added to portal

Page 3: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MoJ – Key Proposals

Is the current scheme a success?Reduced cost:-Stage 1 - £400Stage 2 -£800Stage 3 - £500Web portal a magnet for criminal activity?Are EL/PL claims suitable for the scheme?Disease/construction/product claims too?

Page 4: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MoJ – Key Proposals

Adjusting to ChangePortal stabilityHow long to investigate properly?Clinical negligence?No increase to fast-track limitFast track – fixed recoverable costsTimescale

Page 5: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MoJ – Key Proposals

Helping policyholders adjustTo ensure immediate notificationReview KPIs for investigationsDedicated portal team?Impact of increased claims Increased operational costs

Page 6: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

In the beginning there was…

Page 7: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Meet the new Costs Avengers

Page 8: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Meet the new Costs Avengers

Page 9: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Meet the new Costs Avengers

Page 10: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Meet the new Costs Avengers

Page 12: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012
Page 13: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Claimant Costs Schedule: Fast-Track

Page 14: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Claimant Costs Schedule: Fast-Track

Page 15: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Claimant Costs Schedule: Fast-Track

Page 16: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

How did we get to this?

Lord Woolf’s Reforms

Two key aims:- Reduce delay – a success Reduce cost – sadly, no

Page 17: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

How did we get to this?

Escalation of costs driven byAccess to Justice Act 1999

Page 18: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

How did we get to this?

Page 19: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

How did we get to this?

Page 20: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

•Success Fees/ATE premia – irrecoverable

•Success fees payable by client

Page 21: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

Success fees capped at

of general damages

Page 22: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

Awards of general damages for PSLA to be increased by

Page 23: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

Referral fees abolished

Page 24: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

•Fixed fees for fast-track personal injury cases

•Increased use of summary assessment

•Damages–Based Agreements (Contingency Fees)

Page 25: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Key Proposals

Page 26: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Qualified one-way costs Shifting

C will not pay D’s costs if unsuccessful

D will pay C’s costs if successful

Page 27: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?

Page 28: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?Remember C will lose 25% of general damages

in the success fee

Page 29: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?Remember C will lose 25% of general damages

in the success feeBUT

Page 30: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?Remember C will lose 25% of general damages

in the success feeBUT

Be assisted by:-

Page 31: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?Remember C will lose 25% of general damages

in the success feeBUT

Be assisted by:-a) 10% uplift on general damages +

Page 32: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

QOCS

Interaction of QOCS with P36 CPR?Remember C will lose 25% of general damages

in the success feeBUT

Be assisted by:-a) 10% uplift on general damages +

b) Uplift of 10% on total damages if P36 offer effective (capped at £75,000)

Page 33: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

•C’s costs liability constrained by QOCS

Page 34: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

•C’s costs liability constrained by QOCS•But if C recovers less than D’s P36 offer:-

Page 35: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

•C’s costs liability constrained by QOCS•But if C recovers less than D’s P36 offer:-

1) D pays C pre-offer costs

Page 36: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

•C’s costs liability constrained by QOCS•But if C recovers less than D’s P36 offer:-

1) D pays C pre-offer costs2) C pays D post-offer costs

Page 37: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

•C’s costs liability constrained by QOCS•But if C recovers less than D’s P36 offer:-

1) D pays C pre-offer costs2) C pays D post-offer costs

Caveat

Page 38: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Can D ever recover their costs?

C only ever pay D costs with regard to all the circumstances:-

i) C’s financial resourcesii) Parties’ conduct

Page 39: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

What conduct will make C lose costs protection?

Page 40: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

What conduct will make C lose costs protection?

Page 41: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

What conduct will make C lose costs protection?

Page 42: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012
Page 43: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Back to Naomi…

Page 44: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Back to Naomi…

Page 45: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MGN Ltd v Campbell [2011]

ECHR held that success fee breached MGN’s right to freedom of expression

Back to Naomi…

Page 46: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

MGN Ltd v Campbell [2011]

ECHR give LJ Jackson a shot in the arm.Access to justice (Art 6) must be balanced with

freedom of speech (Art 10)

Back to Naomi…

Page 47: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill

Page 48: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions not in the Bill (but which will be

introduced)

Page 49: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions not in the Bill (but which will be

introduced)•QOCS

Page 50: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions not in the Bill (but which will be

introduced)•QOCS

•New proportionality Test

Page 51: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions not in the Bill (but which will be

introduced)•QOCS

•New proportionality Test•Increase in general damages by 10%

Page 52: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions not in the Bill (but which will be

introduced)•QOCS

•New proportionality Test•Increase in general damages by 10%

•Reversal of Carver (but see amendment to CPR 36.14)

Page 53: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions in the Bill:-

Page 54: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions in the Bill:-

•Abolition of CFA recovery from D

Page 55: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions in the Bill:-

•Abolition of CFA recovery from D•Abolition of ATE recovery from D (save for cost

of expert in clinical negligence)

Page 56: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions in the Bill:-

•Abolition of CFA recovery from D•Abolition of ATE recovery from D (save for cost

of expert in clinical negligence)•Damages-Based Agreements in most civil

litigation

Page 57: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

The Legal Aid, Sentencing and Punishment of Offenders

Bill•Provisions in the Bill:-

•Abolition of CFA recovery from D•Abolition of ATE recovery from D (save for cost

of expert in clinical negligence)•Damages-Based Agreements in most civil

litigation•Payment of additional amounts if C matches or

beats D’s offer to settle

Page 58: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Will we see an end to this?

Page 59: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Will this be the net effect?

Page 60: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Assault

Page 61: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Assaults – Violence between Staff

Page 62: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Assaults – Violence between Staff

Weddall v Barchester [2012]

Request was a pretext for violence unconnected with his role.

Assailant not acting in the course of his employment.

Page 63: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Assaults – Violence between Staff

Wallbank v Fox Designs [2012]

The employer should bear vicarious liability.Spontaneous force in response to an instruction given to an employee.

Page 64: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Mesothelioma

Public Liability

Insurer on cover 10 years before disease develops should respond.

Page 65: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Mesothelioma – Employers’ Liability

Page 66: MoJ Extension & LJ Jackson’s Civil Costs Proposals Simon Johnson 14 May 2012

Mesothelioma – Employers’ Liability