Association of Costs Lawyers discontented with Ministry of Justice's response on fixed recoverable costs

The Association of Costs Lawyers (ACL) has expressed disappointment with the Ministry of Justice's recent response to the consultation on changes to the fixed recoverable costs (FRC) regime. In particular, the ACL is critical of the introduction of fixed costs for assessments.

David Bailey-Vella, the vice-chair of ACL, strongly rejects the idea that the intricate work involved in assessments, demanding high levels of experience and expertise, can be adequately addressed by a condensed assessment procedure. He points out that the proposed costs of £500 are nominal at best and argues for the Civil Procedure Rule Committee to set them at a more realistic level.

A survey conducted among ACL members indicated that £500 is significantly below what would be reasonable for the amount of work typically required in an average FRC dispute, not to mention the considerable shortfall in more complex disputes. The ACL suggests an escalating and significantly higher cap on costs based on the value of the claim.

While most ACL members agree with the introduction of fixed costs for issuing part 8 costs-only proceedings, they argue that the proposed levels (£300 for a claimant and £150 for a defendant) are inadequate for the associated workload. The ACL intends to urge the Civil Procedure Rule Committee to address this issue.

David Bailey-Vella emphasizes that part 8 costs-only proceedings are not initiated solely for costs building but rather because of fundamental disagreements between parties regarding the amount of costs at issue. The ACL asserts that this is the only means available for parties to obtain a court assessment to resolve such disputes.