very in-depth and clear lecture notes from student at city university of London studying the English legal system. I personally revised from these notes and achieved a 2:1 in this module.
Woolf might not have reduced costs
Pre action protocols and case management requirements = additional costs
Problems with satellite litigation
Lord Jackson: tackling costs
Problems: Costs increased, front loaded. Overall cost of each case higher. Satellite litigations.
Jackson noted in his review of civil litigation costs 2010 “there are serious problems of non-
compliance with pre-action protocols”. Also that the courts were “too tolerant of delays and
non-compliance with orders”
Changes implemented via legal aid, sentencing and punishment of offenders act 2012
Lord Jackson’s reforms
Sanctions – more on these later…
Reduction in conditional fee agreements – boosting contingency fee agreements (DBA’s)
Greater use of fixed costs & establishment of a Costs Council to review these costs/lawyers’
hourly rates
Scrapping of referral fees
CPR overriding objective amended – “justly and at proportionate cost”
Proportionality test introduced. Cost should reflect the complexity of the case.
The traditional approach to costs is loser expected to pay winners costs however Jackson
thought this was wrong.
Qualified one way costs shifting rule (personal injury cases)
Reverses the traditional rule
Winning claimant can still recover costs from losing defendant but
Winning defendant cannot recover costs from losing claimant unless claimant has behaved
unreasonably.
(claimant is usually an individual, defendant is usually a company who is in a better position to pay
costs)
Cost management for multi track cases
Both sides know where they stand financially. They have clarity as to what they will recover
if they win and what they will pay if they lose.
It encourages early settlement.
It controls costs from an early stage.
It focuses attention on costs at the beginning of litigation.
Case management conferences are now more effective in that there is serious debate about
what work is really necessary, what disclosure is required, what experts are needed.
“Elementary fairness”: it gives the other side notice of what you are claiming.
“It protects losing parties … from being destroyed by costs.”
Lord Justice Jackson: Confronting Costs Management (3 rd Harbour Litigation Funding Lecture)
Mitchell v News Group Newspapers 2014- lord Dyson wanted to send a clear message about
importance of complying with costs budget rules. Clarified in Denton v TH White 2015.
, Denton v TH White 2015
Set out 3 stage test when breach occurs
Identify/assess seriousness and significance of failure to comply
If breach is not serious/significant then relief from sanctions will normally be granted. If it is,
then court will consider why default occurred
Court considers all circumstances of the case in order to deal with case justly. Will look at
any past or current breaches and take into account promptness of any application for relief.
Court emphasised that opportunistic litigants seeking to take advantage of minor failures to comply
will not be tolerated.
Order has been restored after Mitchell, courts are able to take a more flexible approach.
Other aspects of the civil justice system post Woolf
Money claim online
Established in 2002
Provides a debt recovery service online for sums up to £100,000 e.g. rent arrears
www.moneyclaim.gov.uk
Court fees paid electronically by debit/credit card
Most debt claims undefended – if no defence filed then claimant can apply online for a
judgment and enforcement
24/7 service
V popular with creditors
Claims portal (road traffic accident portal)
Established 2010, quick claim system for:
– PI claims following road accident for between £1000-£25,000
– Where no dispute as to liability (just re how much in damages owed)
Automated system
Deals with 70% of road accident claims
3 stages:
– Stage 1: issue of claim and defence response (within 15 days)
– Stage 2: try to settle
– Stage 3: court hearing
250,000 cases registered in first 6 months
1/3 exit at stage 1 and almost half exit system entirely.
Fathers 4 justice
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