‘Lawyers leave no stone unturned when it comes to arguing about costs,’ the architect of the civil justice reforms being introduced by government said this week.

In a written lecture setting out his position on various detailed aspects of the costs reforms currently being pored over by a Civil Justice Council working party, Lord Justice Jackson added that, ‘despite all the arguments and attacks that have been directed at me over the last two years’, he remained convinced that his proposals were a ‘balanced package’ that represented the ‘best way forward’. He re-iterated his call for the package to not be ‘unpicked’, which would distort its balance.

The Court of Appeal judge acknowledged that his reforms, contained in the Legal Aid, Sentencing and Punishment of Offenders Bill, would inevitably produce some litigation seeking to ‘test the boundaries’. He said that ‘a few robust Court of Appeal decisions’ would be needed to deal with the points raised.

Jackson cautioned against the introduction of any ‘elaborate practice direction’ to supplement the reforms, which he said would mean ‘opportunities for satellite litigation will increase exponentially’. The judge noted that ‘one lesson from the Costs War’ was that lawyers would examine every aspect where there was potential for argument.

Jackson added that the current costs practice direction was ‘too long and complex’ and would be simplified ‘once the main reforms have been finally approved’.

The judge shed further light on his thinking in relation to ‘Part 36’ offers to settle made by claimants or defendants during litigation, which can attract special cost consequences. Clarifying how the Part 36 rules should interact with his new costs-shifting regime in personal injury - which is intended to protect losing claimants from having to pay their costs in most circumstances - Jackson said that claimants who reject a Part 36 offer which is not ultimately beaten at trial will lose their costs protection from the point where the offer was made.

In relation to the proposed 25% cap on claimant lawyers’ success fees, Jackson clarified that this should be an ‘overall cap, including VAT’.

The latest developments in the implementation of the Jackson reforms will be considered in detail in the December issue of the Gazette’s sister publication, Litigation Funding.

Read the lecture.