Seminar Costs post April 2013 NICHOLAS BACON QC LSLA

The New Funding Landscape

Jackson Reforms State of play Proportionality Proportionality Costs Budgeting Costs Budgeting Contingency fees Contingency fees Bills of Costs Bills of Costs Fixed costs Fixed costs Part 36 Part 36

CFA’s No recovery of Success Fees No recovery of ATE Exceptions: Meso cases Insolvency cases

The Legislation LASPO LASPO Key provisions: Key provisions: S.44 S.44 S.46 S.46 New Regs New Regs New procedural New procedural Proportionality Proportionality Part 36 Part 36 Rule 3.9 Rule 3.9

Proportionality Proportionate costs should be defined by reference to: Proportionate costs should be defined by reference to: Sums in issue Sums in issue Value of non-monetary relief Value of non-monetary relief Complexity Complexity Conduct Conduct Wider factors – reputation or public importance Wider factors – reputation or public importance

Contingency Fees LASPO LASPO The likely approach The likely approach Consequences – intended and unintended Consequences – intended and unintended

ONE WAY COSTS SHIFTING ARE WE ANY THE WISER?

Part 36 Where are we on this? Where are we on this? Application to costs assessments Application to costs assessments

COSTS MANAGEMENT The new thinking The new thinking Budgets/ estimates Budgets/ estimates Costs limitation Costs limitation Surely this will result in more time arguing about costs. Surely this will result in more time arguing about costs.

Satellite Litigation Arguments about costs are inevitable Arguments about costs are inevitable A new regime will bring new rules which lawyers and clients will want to test A new regime will bring new rules which lawyers and clients will want to test