Reform Of Civil Litigation Costs

Originally published February 23, 2012

Keywords: reforms, civil litigation costs, civil procedure rules, CPR changes, legal aid

The reforms resulting from Lord Justice Jackson's review of civil litigation costs will be extensive. As stated in previous alerts, the reforms will require changes to primary legislation, the Civil Procedure Rules ("CPR") and its practice directions, as well as a change in litigation culture.

Legal Aid, Sentencing and Punishment of Offenders Bill

Reforms requiring primary legislation are contained in Part 2 of the Legal Aid, Sentencing and Punishment of Offenders Bill, which is currently at the report stage in the House of Lords. The Government has recently announced that Part 2 will not now come into force until April 2013. (For further detail on the substance of Part 2 of the Bill, please see our alert of 23 June 2011.)

CPR changes

Work on changes to the CPR is being undertaken by the CPR Committee and the Ministry of Justice. Other work is being undertaken under the auspices of the Civil Justice Council. All of it is being supervised by a steering group comprising the Master of the Rolls, Lord Neuberger, and Lord Justices Jackson, Moore-Bick and Maurice Kay. Since last September, Lord Justice Jackson and other members of the senior judiciary have delivered a number of lectures on how the reforms are to be implemented, which are clearly intended to raise awareness of the changes. Nine lectures have been published in the series so far, the text of which are accessible from the judiciary website. Two changes have already come into force. First, the hourly rate for costs that a litigant in person can recover from its opponent in civil litigation has been increased. Secondly, CPR Part 36 (Offers to Settle) has been amended to resolve the uncertainty caused by the Court of Appeal decision in Carver v. BAA [2008] EWCA Civ 412, mentioned in our alert of 30 March 2011. The amendment makes it clear that, in relation to any money claim or money element of a claim, "more advantageous" means better in money terms by any amount, however small. Much of the rest of the drafting is already complete but is being held back so that all of the changes can be launched together, "big bang" style, when the primary legislation comes into force next year. Work which has already been completed but not published includes:

a handbook on Alternative Dispute Resolution; new provisions for disclosure in multi-track cases; and a rule change...