A leading claims firm has promised it will not walk away from personal injury or clinical negligence work despite the imminent prospect of fixed costs – but has admitted that client expectations will have to be managed in the new regime.
The expansion of fixed costs – extending to most civil cases valued up to £100,000, comes into effect on 1 October. Firms are spending the summer adjusting business plans and working out whether they can afford to take on as many cases in future.
Industry experts warn that meritorious claims involving vulnerable people may be too expensive to run under the tariff-based system. It is expected that personal injury firms being squeezed by the fixed costs may be forced to abandon PI work because their outgoings cannot match the fees being paid.
One of the biggest claims firms, national practice Hudgell Solicitors, said today that it remains ‘100% committed’ to ensuring the reforms do not affect its work representing injured people.
Chief executive Rachell Di Clemente said: I am long in the tooth enough to have worked in this sector through both the Woolf and Jackson reforms, but the changes later this year are a whole new kettle of fish – alongside being drafted in a way that will undoubtedly create years of satellite litigation and ensuing delays, they appear in many areas to be illogical and risk blocking justice entirely for many decent hard-working people.
‘We expect some firms in the personal injury and clinical negligence markets to exit the sector once again, indeed we have seen a few already place a limit of the value of cases they will accept, but we have been working hard to find ways to ensure that we are able to continue to help the many people whose claims will be captured by the fixed costs regime. It is simply not within Hudgells’ DNA to have to turn away people who need our support because their case isn’t deemed to be of sufficient value.’
Di Clemente said Hudgells and other firms must find ways to manage clients’ expectations and explain that in some cases it will ‘simply not be possible to provide the same kind of service’ that they enjoyed previously.
‘However, we are committed to still providing the same ‘level of service’ even if it looks slightly different to how we do things today,’ she added.
The firm, which is headquartered in Hull but also operates from Manchester, has hired solicitor Jennifer Dougal as head of operations ahead of the fixed costs extension.
Dougal, who joins from Jefferies Solicitors, was a member of the Civil Justice Committee working party which mediated the fixed fee regimes for noise-induced hearing loss claims.
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