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Jackson Reforms: fixed recoverable costs look likely as MoJ launches consultation

The Ministry of Justice has launched a short consultation aimed at extending fixed recoverable costs (FRC) in civil claims.

The implied outcome of the consultation, which runs to 6 June 2019, is that the government intends to take forward Sir Rupert Jackson's 2017 recommendations largely unamended, according to law firm BLM:

"It looks very much like when not if fixed recoverable costs will be extended throughout the fast track and to claims valued under £100,000," according to Alistair Kinley, director of policy and government affairs at BLM. "The expected benefits are much greater predictability in litigation costs and very possibly earlier resolution of disputes".

In 2013 the Jackson Reforms significantly changed the civil litigation process and the way insurance managers handle claims. In 2017 Lord Justice Jackson recommended further changes, in particular extending fixed recoverable costs to all fast track claims (i.e. with a value of less than £25,000) and introducing a new intermediate track for claims valued under £100,000.

The government is seeking views on three specific areas:

  1. extension of FRC for all cases in the Fast-track;
  2. extension of FRC for certain types of 'intermediate' cases; and
  3. the introduction of costs budgeting in 'heavy' judicial review cases.

Click here for a detailed analysis of the proposals from BLM.

Click here to listen to a joint Airmic and BLM webinar on the implications for risk managers.