January 2025 Recap!

This week, we take a moment to reflect on January 2025 and revisit the key case law articles that shaped this month.

Kicking off with Emma Ganley’s insightful piece, “One Rate Does Not Fit All” published on 9th January, we then move on to Victoria Stewart’s “Does Your Client Know?” from January 16th, which highlighted critical client communication regarding costs. Next, Mark Balme delved into the ongoing challenge of “Medical Agency Fees” in his article on January 20th, followed by Katherine Davies’ thought provoking exploration of “Costs Budgeting: Is the Future Light?” on January 23rd.

One rate does not fit all!

In Brierley v Howe & Anor (Re Costs – 36 Bourne Street Ltd) [2024], the court allowed the Respondent’s solicitors to charge London 1 rates for a technical strike-out application but noted that this rate may not apply to other aspects of the case. The court highlighted the possibility of different rates for different parts of the case, though it is unclear how this approach would play out in Detailed Assessment, where rates are typically set per fee earner. The case raises questions about whether higher rates could be justified for specific complex elements of a case, potentially leading to more intricate cost assessments.

Does Your Client Know?

Solicitors must ensure they keep clients informed about legal costs, especially when dealing with budget overspends and shortfalls. It is essential to obtain informed consent from clients for additional costs, such as shortfalls, and to provide clear estimates for fees, including any potential excesses. Recent case law, such as Herbert v HH Law and Belsner v CAM Legal Services, highlights the importance of informed consent and communication regarding costs. Solicitors must be proactive in advising clients about potential budget changes and ensure they understand the financial implications to avoid costs being deemed unreasonable or unrecoverable. Regular updates and proper documentation, like Budget Reports and TTL+ billing, can help mitigate financial risks.

Medical Agency Fees

The ongoing debate over medical agency fees continues, as seen in JXX v Archibald, where the issue of paying expensive expert fees upfront remains a challenge for claimants. The court’s decision highlighted the need for substantiation of medical agency fees, which remain vulnerable to reduction unless clearly justified.

Costs Budgeting: Is the future light?

In a related development, a new “costs budgeting light” pilot, set to begin in April 2025, will test a simplified costs budgeting regime for claims under £1m. This initiative aims to reduce court time and costs while maintaining exclusions for higher-value cases, with further details to be finalised in the coming months.

Stay tuned for the latest updates throughout February 2025! PIC Costs News

Be sure to check out our exciting upcoming events for 2025! Enjoy a gin tasting experience while supporting the Spinal Injury Association, or savour the flavours of a delicious curry at our Action Against Medical Accidents Curry Nights – PIC Events

30.01.2025

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