Adjudication Scheme For Professional Negligence Claims

A revised adjudication scheme for professional negligence claims has been launched recently, updating the original scheme that was launched in May 2015.

Take up was low under the original scheme and changes have therefore been made with the intention of encouraging increased participation in the scheme.

The key changes to the scheme are as follows:

The scheme is now open to all professional negligence claims - previously it was only available where the dispute involved a claim against legal advisers. There is still no definition of "professional negligence disputes", but the guidance states that the scheme is intended to apply to disputes "between professional persons such as lawyers, valuers, accountants and so forth and their clients". The £100,000 cap on the value of any claim that can be adjudicated has gone - there is no longer an upper limit; New fee bands have been introduced - the intention being to cap the fees payable to the adjudicator, depending on the value of the claim; Detailed guidance notes on the scheme and its applicable rules have been issued. The scheme is entirely voluntary and is based on the statutory adjudication scheme for construction disputes, although there are some differences. Adjudication for construction disputes is compulsory, whereas for professional negligence disputes adjudication is voluntary - both the claimant and defendant need to agree in writing that they will be bound by the provisions of the scheme.

It is therefore another form of alternative dispute resolution - although we wait to see whether there might be cost consequences imposed by the court if a party/the parties refuse to consider adjudication...