DAC Beachcroft Court Fees to increase from 9 March 2015 - DAC Beachcroft

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DAC Beachcroft Court Fees to increase from 9 March 2015

Published On: 4 March 2015

The Ministry of Justice has announced increases to the Court Fees which will be charged in civil litigation in England and Wales for cases commenced on or after 9 March 2015. The increases are expected to deliver an additional £120 million in income which is to be used to enhance the service provided by the Courts.   

The new fee levels will include significant increases to some of the fees payable on issuing proceedings, which in turn will increase the total claims cost for paying parties, and have been opposed by many parties including The Law Society.

The non-recoverability of success fees following implementation of the Legal Aid, Sentencing and Punishment of Offenders Act in April 2013 has seen the costs payable to claimants' solicitors reduce compared to that payable on pre-LASPO claims, but the benefit of this reduction will be eroded by the increased Court Fees which will be paid where proceedings are issued.

The table below sets out a comparison between the fees payable on issuing proceedings at present and those which will be payable on proceedings issued from 9 March 2015, and which are expected to be payable on proceedings where the value increases after 9 March 2015. The fee for issuing claims up to a value of £10,000 will not be increased, whereas above £10,000 it will be 5% of the value of the claim up to a celing of £10,000.

Value of claim £

Fee now £

Fee proposed £

Increase in fee £

Increase

15,000

610

750

140

23%

20,000

610

1000

390

64%

25,000

610

1250

640

105%

30,000

610

1500

890

146%

40,000

610

2000

1390

228%

50,000

910

2500

1590

174%

70,000

910

3500

2590

285%

90,000

910

4500

3590

395%

100,000

1115

5000

3885

348%

125,000

1115

6250

5135

460%

150,000

1315

7500

6185

470%

175,000

1315

8750

7435

565%

190,000

1315

9500

8185

622%

200,000

1515

10,000

8725

576%

250,000

1720

10,000

8280

481%

500,000

1920

10,000

8080

421%

Other increases may follow in the near future including increasing the fee for consent applications from £50 to £100, and for contested applications from £155 to £255.

The increased fees may dissuade some litigants from commencing proceedings and the impact of the increases on the cashflow of claimants' solicitors may persuade some to retain claims within the Low Value Protocols' portal process rather than seek the increased profit costs which are payable on claims falling from the process. However, as the majority of injury claims presented have a value of not more than £10,000, insurers should not expect the increased fees to cause a dramatic fall in the number of claims presented.

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