The Jackson Report

The Jackson Report
Lord Justice Jackson’s Preliminary report reviewing the cost of civil litigation was published on Friday 8th May

"The purpose of the report is to review the operation of the cost rules and to examine the possible means of reducing the cost of civil litigation, whilst promoting access to justice. This report does not reach any firm conclusions .It sets out the facts and identifies possible options. This report is intended to set the scene for the consultation exercise, not to prejudice the outcome of that consultation."

Lord Justice Jackson

As anticipated the Jackson report indicates concern over costs of civil justice being disproportionate to the damage paid to clients as well as challenging the government’s policy of making the courts self financing.

The report states that court fees now account for some 80% of the £650m a year cost of running the civil and family courts in England and Wales, and fees have risen substantially above the rate of inflation. Claims Management companies also come under criticism for their contribution to litigation cost increases.

Lord Justice Jackson is also pushing for a review of the principle in UK litigation that the loser pays and that damages won in PI cases are sacrosanct and people should never have to pay costs out of them. He suggests that this rule could be changed to winning claimants recovering their costs but wining defendants might not always recover all of theirs.

The 650 page report has generally been welcomed by the various interested parties that have commented so far.

This subject naturally raises concern in the industry, for niche personal injury practices as well as high street practices that offer litigation services. We hope that in the current economic climate the government and its advisors will refrain from implementing further regulatory burdens that will impact on the profitability of the sector. As always bennettbrooks aim to keep you up to date on these matters and will continue to keep you informed as more information comes available.

The full Jackson report can be found by clicking on the link below:

http://www.judiciary.gov.uk/about_judiciary/cost-review/preliminary-report.htm