Happy New Year!
One of the last jobs I did before the Christmas break was to
send off EAD's response to the
Government’s discussion paper on fixed recoverable fees for most Personal
Injury cases. Those cuts would result in cuts in charges as high as 60% and the
inevitable closure of firms or decision to abandon this area of work –
We made the point that the discussion paper gave no hint as
to the basis on which the cuts were calculated and appeared to be unrealistic
and apparently based on rhetoric from insurance companies. The reply had to be
rushed as the response time was due to expire on 4th January.
Thankfully, the last job of the year was to read the news
that the plans had in fact been shelved. This followed legal action taken by APIL and MASS
arguing that the proposals were unlawful. At the last moment before the break
the Lord Chancellor Chris Grayling, who is not himself a lawyer, conceded the
point.
Whilst this is good news for lawyers acting for ordinary
people it is probably only a delay. The government seem determined to press on with
its relentless attacks on the legal profession on behalf of the insurance industry
but it is to be hoped that some sense will prevail when the plans come back.
So what else does 2013 have in store? I think that it will be
a year of change beyond anything we have ever known. We will see in the impact of
the almost total abolition of civil legal aid in April. That will certainly see
a massive increase in the number of cases pursued without lawyers despite the concerns
of the judiciary –
It will probably also result in an increase in the amount of
free work done by lawyers.
2013 is also going to be the year when Alternative Business
Structures come into their own –
These have been popularly known as TESCO law models as High
Street names move into the Legal Services Market. But it will also see the
growth in partnerships between traditional law firms and outside suppliers of
work. Many firms have built their businesses on the basis of buying cases from
Claims Management Companies. That model will end when referral fees are banned
in April. This will open up a market for work and this will be a real
opportunity for these new style businesses which are to combine legal expertise
and commercial experience.
So it is certainly not going to be a quiet year.
Watch this space!
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