Written By Jack J Collins, Editor of AllAboutLaw.co.uk

Landmark High Court case challenges fixed legal fees

Written By Jack J Collins, Editor of AllAboutLaw.co.uk

Only one day after the Ministry of Justice declared its intention to put a cap on the payouts for whiplash injuries, the decision was challenged in a crucial case at the High Court, which granted that the appeal was successful.

A High Court appeal has cast doubt on the government’s plans to introduce fixed legal fees, just a day after the Ministry of Justice unveiled its intention to cap whiplash payouts.

The decision to ban whiplash payouts was part of a new government initiative to change the way that payouts are handled after injuries sustained on the roads, with the ultimate aim being the end of the 'compensation culture' which they feel to be prevalent in the UK.

But a case at the Court of Appeal, named Merrix v Heart of England NHS Trust, saw a sucessful counter that the current way that costs are budgeted should be a fair and sufficient way to decide the level of fees paid out to claimants.

The judge at the court agreed with the claimant that the idea of capping the budget meant that there could be a reduction for the sake of reduction, rather than for good reason.

The programme of reducing costs has been part of a recent government drive to cut costs, and was initiated after a Department of Health consultations into the topic of fixed costs related to medical negligence claims (of up to £25,000) and a further review by Lord Justice Jackson.

The solicitors for the claimant were Irwin Mitchell.

Daniel Frieze, who was the claimant's barrister and head of the personal injury group at St John’s Buildings, said: “This ruling clearly shows the government that continued wholesale changes to solicitors’ costs may be an unwelcome distraction. In particular, the time, effort, judicial and lawyer training should not be thrown out to pursue an agenda which many consider riddled with self-interest and short-term political gains.

“Cases like this also emphasise that the present cost regime is working, and will hopefully force those in positions of power to rethink their approach. The current system is underpinned by the notion of fairness, and the focus should be placed firmly on tweaking the current system to prevent misuse, rather than attempting wholesale change.”

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