8 May, 2012

Small claims limit to be raised?

Filed UnderLegal Costs  

We are finally starting to see a bit of stability and certainty returning to the personal injury and legal costs world.

Obviously, I am joking.

Those responsible for running the RTA portal recently told the Ministry of Justice that it would take 11 months to amend the portal to encompass RTA claims worth up to £25,000 and a further two years and seven months to build and test a new system for EL and PL claims. Some breathing space then? Don’t count on it.

The government is apparently determined to introduce the expanded RTA claims portal in April 2013, as previously planned.

If that looks like a seismic shift, Legal Futures is reporting that the government is planning to revisit the possibility of raising the small claims track limit for personal injury claims from £1,000 to £5,000 and plans to consult over this issue in the summer. That really would have a profound impact on the PI industry.

Comments

2 Responses to “Small claims limit to be raised?”

  1. Graham Whittaker on May 8th, 2012 12:50 pm

    Given that they have just axed the e-working project in the Rolls Building, I think the extension is more likely to be axed than implemented in April 2013.

  2. Anonymous on May 11th, 2012 1:57 pm

    Question.
    if they increase the SCT to capture claims up to £25k, will it remain the case that the Court fees payable (including Allocation)remain suitably low, to accomodate the pocket of the LIP’s?

    That being the case, will they be wholesale closing the majority of the HMCTS, given the destruction of a larger part of their fees income (which can also be said of the DA fees)?

    That being the case, where will all these LIP’s having to deal with claims themselves have to go, to have their cases heard? And how many will be content to losing a days pay (if not more if they have far to go) to do so (remember CPR27.14(2)(d) covers only reasonable travel and overnight stay)?

    Not a problem Defendants Insurers will be troubling themselves with, with the agreements they have with Panel Solicitors and Chambers

    Access to Justice?

    That being said, no doubt several Defendant cost negotiator firms are gearing to make that their next are of challenge – “he could have caught the bus for less”, or “theres a cheaper hotel 12 miles away, but he could just have got up earlier”.Perhaps there is a growth area in this after all!

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