Costs lawyers warm to Jackson reforms

The number of costs lawyers predicting that the Jackson reforms will force them to cut the size of their practices has more than halved since last year, from 42 per cent to 20 per cent, a survey has found.

More costs lawyers think their firms will grow than shrink as a result of the changes, 28 per cent compared to 20 per cent, the survey of 128 members of the Association of Costs Lawyers revealed.

More than half, 55 per cent, said they would be changing their practices as a result of LASPO. Of those a quarter said they would take on new staff, more than double the number that said they would be cutting jobs.

However, despite their confidence in their own businesses, the survey, carried out at last month's ACL conference, suggested costs lawyers remain cautious about the long-term impact of LASPO.

Considerably more believed that the total number of costs lawyers will have fallen in three years' time, 38 per cent compared to 28 per cent.

Those who believed that disputes between solicitors and their clients would rise as a result of the Jackson reforms, went up from 69 per cent to 80 per cent.

The most common mistakes made by solicitors when dealing with costs were 'failing to keep thorough records', thinking 'they can do it themselves' and using costs lawyers 'only when things have gone wrong'.

A smaller proportion of costs lawyers, 38 per cent, said solicitors also made the mistake of using unqualified costs draftsmen.

In response, 12 per cent of ACL members said they had challenged the status and rights of audience of an unqualified opponent in court. In one in five of these occasions, the court took action and refused to hear the unqualified person.

Just over half of ACL members had experienced an unregulated costs draftsman inflating their bills. Of these, 38 per cent reported that bills were inflated by a quarter to a half, while 20 per cent said they were inflated by more than 50 per cent.

Murray Heining (pictured), chairman of the ACL, said it was inevitable that solicitor and client disputes would increase and solicitors should make sure their records were in order to counter any challenges.

"Costs lawyers are a resilient group of people who have proven the value they give their clients. Now that the 'shock' of the Jackson reforms has passed, many can see a positive future where they continue to make an important contribution of the working of the justice system."