Costs—Referral fees

Under the provisions of ss 56-60 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the payment and receipt of referral fees in personal injury cases would be banned from April 2013 as part of the government’s reform on “no win no fee” conditional fee agreements. One of the effects of the provisions of the Act was to reduce the fixed costs for small value personal injuries claims. The reforms had been made clear in advance to relevant groups, however there had still been some discussions concerning the amount of the reduction to fixed costs. In February 2012, the prime minister met with representatives from the insurance industry, following which, communications were sent between the government and the insurance industry. Subsequently, the provisions and effects of the Act were made public. The claimant challenged, by way of judicial review, the secretary of state’s decision to implement the reforms. The claimant submitted that the