The importance of accurate costs verification and negotiation will significantly increase when the forthcoming multi track extension of fixed recoverable costs is implemented.
It will bring with it a larger range of fixed fees at levels that are considerably higher than those applicable to fast track claims. It will also increase the risk of “gaming” as claimant solicitors seek to maximise damages and particularly costs in each and every claim. This trend is likely to be exacerbated by the extension of FRC to multi track claims.
Gaming behaviours
Claimant solicitors are exhibiting a variety of adverse behaviours designed to obtain a higher fixed fee than they are entitled to recover. Frequency of the following behaviours is increasing:
Fixed fee behaviours
Disbursement behaviours
Claimant solicitors also exhibit adverse behaviours in claims for disbursements. They claim:
Market update
The frequency increase is consistent with changes in other market indicators over the last 12 months in that:
It all points to a hardening of the market as claimant solicitors try to maximise damages and costs recovery on every claim.
Frequency and Savings
Keoghs costs team deal with approximately 11,000 fixed recoverable costs (FRC) claims per year. On a rolling 12 month basis, we have seen gaming frequency increase from 21% of claims in Q1 to 52.6% of claims in Q4. On the 52.6% of claims, Keoghs costs team achieved an average saving of £696 per claim.
Claimant solicitors are actively seeking to maximise fees they derive from FRC claims. We shall continue to challenge gaming behaviours on FRC claims that we deal with on behalf of our clients.
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