Personal Injury News
3rd April 2013
IMPORTANT CHANGES FROM 1st APRIL 2013 (JACKSON’S REFORMS)
From 1st April 2013 Jackson’s reforms came into effect. The significant changes were made to recoverability of costs, after the event insurance and conditional fee agreements.
Those claimants who entered into conditional fee agreements on or after 1st April 2013 will need to pay after the event insurance and success fee by themselves as those will no longer be recoverable from the other side. However, there is exception regarding ATE recoverability from the other side for some clinical negligence cases.
Qualified one-way costs shifting (QOCS) has been introduced on 1st April 2013 for personal injury claims and it has retrospective force. However, it does not apply to claims with conditional fee agreements and/or after the event insurance entered before 1st April 2013. Qualified one-way costs shifting (QOCS) means that if the Defendant wins the Claimant will not have to pay the Defendant’s costs. There are, however, some exceptions.
Damages based agreements have been allowed in civil cases, including personal injury cases, from 1st April 2013. This means that the lawyers can enter into agreement with a client under which, in case of success, the lawyers will be able to get share of the damages which cannot exceed 25% of the damages.
10% uplift in damages is in force for those claims which do not have recoverable success fee.
Fixed recoverable costs will be changed for RTA claims and introduced for Employers’ liability and Public Liability Claims.
Referral fees have been banned from 1st April 2013. Furthermore, making other arrangements (such as Medical Agency and ATE insurance) for client and being paid for this is now prohibited.
Employers’ and Public Liability portals have been introduced. This means that all the employers’ liability and public liability personal injury claims which do not exceed £25,000 and with cause of action occurring on or after end of July 2013 will have to go through portal. There are slightly different rules for industrial diseases.
The RTA portal will be extended to claims up to £25,000 by the end of July 2013.