MITIGATING THE IMPACT OF THE COURT FEES INCREASE 1: LIMITATION STANDSTILL AGREEMENTS

March 2, 2015 · by gexall · in Applications, Avoiding negligence claims, Civil evidence, Civil Procedure, Costs, Limitation, Members Content, Useful links

The general view of the court fee increases is well known. The increases are based on inadequate research and will have a major detrimental effect on the economy as well as the interests of justice. Since the increases are likely to come into force soon it is important that litigators examine ways...

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Tags: Mitigating court fee increases, Reducing costs in litigation

2 Responses

Tim · March 3, 2015 at 02:09:12 · →

How would a standstill help? It would simply mean that, if the client does eventually have to issue, he will have to pay the higher fee. Surely, the more obvious method would be to agree to issue before the rise with a stay thereafter?

The problem with any of these methods is that courts do not like litigants/lawyers messing about with the rules. No solicitor is likely to get sued for playing it by the book. If the case is not at the issue stage, don’t issue it (because you may be criticised for doing so). If the fees go up in the meantime, that is not the lawyer’s fault: he/she is hardly likely to be regarded as negligent for not commencing proceedings which did not need to be commenced.
gexall · March 3, 2015 at 10:21:10 · →

I think the central point is “if the client does eventually have to issue”. The issuing of proceedings is not inevitable in every case. Many (in fact most) personal injury actions settle without the need for proceedings. Proceedings are often issued because the limitation period is looming. If the parties believe that the matter is capable of settlement without the need for issue they can (and probably should where it is possible) agree a “standstill” agreement so that court fees are not incurred.

Of course there will be a flurry of activity and issuing over the next three days and if a claimant takes a view that it will be necessary to litigate then proceedings will need to be issued before next Monday.