Jackson means less work and redundancies, survey suggests

Four out of five claimant personal injury firms are bracing themselves for less work after the Jackson reforms come into force in April next year, a survey has suggested.

An online survey of 50 firms by the Association of Costs Lawyers found that 78 per cent believed they would get less work after Part 2 of LASPO comes into force, with 84 per cent believing it will reduce their profitability.

A large majority, 90 per cent, said they expected competition to drive down success fees once they are no longer recoverable, while two thirds believed the reforms would make their firms less willing to take on riskier cases.

Firms also said the Jackson reforms meant that staff would be made redundant. Six out of ten, 62 per cent, said they expected to do this, while only 10 per cent said they would definitely not.

Iain Stark, chairman of the Association of Costs Lawyers, said: “It is easy for the public and policymakers to be indifferent to the impact of the Jackson reforms on claimant lawyers, but the responses to our survey indicate a demoralised group of people who will not be able to hold open the door so that injured people can access justice.

“It is often said that, like water, lawyers will find a way to continue, but at what cost?”

Most firms, four out of five, opposed extension of the RTA portal. A third said they were likely to use contingency fees for RTA cases once they were allowed to by the LASPO Act.

There was uncertainty about who would pay for ATE insurance premiums, where insurance was available. The most popular prediction was that it would be funded both by clients and solicitors.

In a separate development, former chairman of Irwin Mitchell Mike Napier is joining Harbour Litigation Funding’s investment and advisory team as a consultant.

Napier chaired a Civil Justice Council working party which developed a third-party funding code, launched by Lord Justice Jackson in November.

He went on to chair another CJC working party on contingency fees, which recommended that they should be capped at 25 per cent of damages, excluding insurance premiums and disbursements.

A spokesman for Harbour said Napier would advise on costs policy, including contingency fees, while assisting the investment team with individual cases.