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Civil Justice Reform

29 October 2024
It's going to be a busy 6 months ahead in the Civil Justice arena. Each quarter, Nicola Critchley, Partner, DWF will highlight the latest news from the Insurance industry.

Civil Justice Council

CJC reports are expected in Q4 on:-

  • Enforcement – reviewing and improving the enforcement of civil judgments.
  • Litigation funding (interim, with final report expected next summer) – reviewing third-party litigation funding to assess its effectiveness, access to justice, and regulatory option, potentially recommending changes to improve fairness and efficiency.
  • Pre-action Protocols phase II – focusing on litigation specific pre-action protocols and the potential creation of new ones.
  • Procedure for determining mental capacity – the CJC is reviewing how civil courts identify and manage cases involving a party’s mental capacity to conduct proceedings.

Other CJC news and updates:

CPR costs news

The new fixed costs determination procedure (FCD) came into effect on 1st October 2024, making costs assessments on FRC cases considerably cheaper for insurers with the paper determination costs fixed at £500 plus vat, disbursements and if an oral hearing is requested £250/£333 dependant on track.

The work on introducing fixed costs in pre-litigation clinical negligence fast track cases is currently sitting with the DHSC. We understand the Government are keen to move this forward.

Consultations

And from the Government:

  • The whiplash tariff review - no approximate date given by the government but the report has been complete for some time – we understand this is likely to be published in the next few months.
  • The personal injury discount rate – see more detailed article here
  • Expanding mandatory dispute resolution, compulsory ADR having been introduced on some small claims track matters already and separately the rules have been changed post issue to adopt the decision in Churchill.
  • Extending the DCP to all intermediate and multi-track matters
  • Confirmation of the outcome of the Medical reporting consultation which may see the fixed cost of medico-legal reports in low value claims rise
  • Continuing the rollout of the digital claims service, which from what we have heard at the Labour conference is pretty much the only solution offered to the civil courts backlog as extra funding is not expected.
  • The Labour manifesto stated they would “support drivers by tackling the soaring cost of car insurance” and “urgently call in the regulators to crack down on any unfair practices and to come clean on the causes of soaring costs for consumers”. We await to see what this looks like in practice

Industry collaboration – ongoing initiatives we are involved in through FOIL and the ABI include:

  • Subsidence claims
  • Vehicle strikes
  • Issues with redaction of police reports
  • Serious Injury Guide
  • Tinnitus claims
  • Medical agency fees
  • Rehabilitation fees
  • Extending mediation
  • Lobbying to increase the SCT limit
  • Reviewing the Serious injury guide
  • DCP & OCMC

Future legislation

A notable omission from the King’s Speech was the PACCAR reversal Bill (Litigation Funding Agreements (Enforceability) Bill which fell by the wayside due to the election. However, the Arbitration Bill was reintroduced in the House of Lords.

Other notable draft legislation includes the Passenger Railway Services (Public Ownership) Bill; the L-Ion Battery Safety Bill (Private Members Bill); and the Regulated and Other Activities (Mandatory Reporting of Child Sexual Abuse) Bill (PMB).

Also vitally important is what happens next with the Automated and Electric Vehicles Act 2024.  Although this legislation is new, it will be given focus by the 'top up' statutory instruments to be introduced over the coming months and years. Some gaps are clear, such as the lack of alignment with the MIB agreements in place.

Clearly, there has been an extensive period of reform with plenty more on the horizon. As we move forward, it will be crucial to monitor the impact of these reforms and make necessary adjustments to address any emerging challenges.

Further Reading