26 August, 2011
Filed UnderLegal Costs
By how much is the average claim for costs reduced?
When I started in costs law, back in 1997, average savings for volume legal costs negotiating work in insurance personal injury claims was in the region of 21-23%.
With the advent of claims management firms, ATE premiums and success fees, that rose at one stage to around 30-35%. (Depending on what was included or excluded in the figures different firms managed to massage the figures and direct comparisons have never been possible.)
The introduction of predictable costs in RTA claims considerably reduced the scope for argument in low-end RTA work and these claims are probably recorded separately by volume negotiating firms.
The introduction of fixed success fees for most RTA, EL and EL disease claims and the decision in Roger v Merthyr Tydfil CBC has considerably reduced the scope for argument in other claims. Has this been made up for with increased claims for hourly rates and time?
Where do average savings now stand?