header-logo header-logo

Fees hike U-turn

23 December 2015
Issue: 7681 / Categories: Legal News
printer mail-detail

Sigh of relief after government decides against further hike to court fees

Practitioners are breathing “a sigh of relief” after the government dropped its plans to raise the £10,000 fee cap for money claims.

In March, the Ministry of Justice (MoJ) introduced a new fee regime with a 5% issue fee for money claims, capped at £10,000, sparking intense opposition from the legal profession.

In July, the government proposed a further hike in court issue fees, with a new cap of £20,000. Again, the legal profession from City firms to sole practitioners mounted a staunch opposition, pointing out that it would not only restrict access to justice for individuals and smaller businesses, but damage the reputation of London as an international centre for legal dispute resolution.

Last month, however, the MoJ abandoned its plans. The cap will therefore remain at £10,000.

David Greene, senior partner at Edwin Coe and NLJ consultant editor, says: “The original hike in applying an ad valorem fee of 5% of the value of the claim was universally opposed but the government went ahead in any event.

“On a £200,000 claim the claimant is required to pay a fee of £10,000, which is a substantial sum for a claimant already out of pocket. No doubt the hike was affecting claimants’ access to the court.

“Many thought that the government would ignore again the even more vigorous opposition to a further increase just months later. We are all relieved that the government chose to listen to the opposition and has abandoned the proposals.

“While practitioners may have had some influence the government may have been particularly concerned about the voices from the City that suggested the increases would affect the multi-billion trade London does as the leading centre in the World for international dispute resolution.”

Jonathan Fozard, partner at City law firm Carter Lemon Camerons (CLC), says: “The March 2015 fee increases have already had the effect of discouraging people and business from bringing meritorious claims in the courts.

“The further increases which the MoJ had been suggesting would only have exacerbated the problem.”

Issue: 7681 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Gibson Dunn—London partner promotions

Gibson Dunn—London partner promotions

Firm grows international bench with expanded UK partner class

Shakespeare Martineau—six appointments

Shakespeare Martineau—six appointments

Firm makes major statement in the capital with strategic growth at The Shard

Myers & Co—Jess Latham

Myers & Co—Jess Latham

Residential conveyancing team expands with solicitor hire

NEWS
One in five in-house lawyers suffer ‘high’ or ‘severe’ work-related stress, according to a report by global legal body, the Association of Corporate Counsel (ACC)
The Legal Ombudsman’s (LeO’s) plea for a budget increase has been rejected by the Law Society and accepted only ‘with reluctance’ by conveyancers
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
back-to-top-scroll