Our thoughts on the FRC update to regulations

From the start of October, new regulations around fixed recoverable costs came into force in England and Wales. There was, and still is a potential concern that the changes will lead to people being able to recover fewer costs after a successful litigation.

Your solicitors need to ensure they offer clear and prompt advice to clients on these changes, to avoid becoming liable for a professional negligence claim if a client’s ability to recover costs is less than they would have expected due to these new rules.

Here is what our Legal Director, Michael Young, says on the matter:

“While I understand the impulse to simplify the current system, any changes must not leave the Claimant facing further obstacles to recovering costs reasonably incurred in the progression of a claim. Currently, the new regulations would in theory reward a Claimant for pushing through to Court proceedings instead of exploring a pre-action settlement in greater depth. This outcome would not serve the interests of either Claimants or Defendants.

“The changes also have the potential to deter Claimants with a strong claim, as they may not be able to take on the potential irrecoverable costs of paying for a solicitor throughout. Alternatively, Claimants may be forced to rely more heavily on other sources of funding which in itself may mean they recover less ultimately for themselves.

“However, with these changes imminent, it is vital to be ready, as failing to advise with the changes in mind could leave the profession facing a professional negligence time bomb. If solicitors fail to advise their clients on these new changes, they could find themselves liable when Claimants end up recovering less costs than they, entirely justifiably, believe they are entitled to.”

Contact our professional negligence solicitors today

If you wish to discuss these changes and think your solicitor may be acting negligently, we urge you to get in touch with our team today on 0808 164 0808.