In a statement released on 17 April 2015, the Master of the Rolls, LJ Dyson, concluded that he had no evidential base to make any change to the existing Guideline Hourly Rates (GHRs), and they would therefore remain at their current rates, as originally set in 2010.
Claimant lawyers will rejoice because the evidence obtained last year supported a reduction. Whilst this may disappoint compensators, the GHR will remain an integral part of summary and detailed assessment.
LJ Dyson said:
“The existing rates will therefore remain in force for the foreseeable future, and will remain a component in the assessment of costs, along with the application by the judiciary of proportionality and costs management.”
GHRs will remain an integral part of the process of judges making summary assessments of costs in proceedings. They also form a part, even if only a starting reference point, in the preparation of detailed assessments and provide a yardstick for comparison purposes in costs budgeting.
No doubt as time marches on, claimant solicitors will seek to recover increasingly higher hourly rates upon assessment. With GHRs frozen and with zero to minimal inflation in the short to medium term, claimants may have to resort to adducing evidence of their overheads to justify higher hourly rates.
Citing the current trends and factors at play upon the legal market, LJ Dyson once again expressed the hope that fixed fees be extended further, saying:
“I have long advocated their wider application, and will continue to press this point to Ministers and others in the hope that this important element of the Jackson reforms is implemented.”
The volume of costs management hearings and detailed assessments is having a significant impact upon judicial time. One way to alleviate the pressure is to extend fixed fees.
Given Dyson’s clear support for such an extension (also supported by Jackson himself) insurers should consider lobbying for further reform in this area and the broader application of fixed fees in higher value cases. To some extent, appetite for reform will be influenced by the outcome of the forthcoming election and Keoghs will continue to closely monitor developments and advise clients on post-election strategies.
To view LJ Dyson’s full statement, please visit:
https://www.judiciary.gov.uk/publications/guideline-hourly-rates/
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