Press release
Claimant lawyers and insurers unable to agree success fees for Employers' Liability claims
March 2004
The series of mediations conducted by the Civil Justice Council at the invitation of claimant lawyer groups and insurance industry representatives to facilitate has concluded with parties unable to reach agreement on the level of success fees for employers liability (EL) claims have concluded with parties unable to reach agreement.
The mediation process has achieved major success in bringing fixed recoverable costs to pre issue road traffic accident (RTA) cases under £10,000, and fixed success fees across all RTA claims. , however Tthe lack of agreement for success fees in EL claims effectively means that the overall mediation process will be suspended cease forthwith.
The Chairman of the Civil Justice Council, Lord Phillips of Worth Matravers, Master of the Rolls, said:
“I am greatly disappointed that the costs mediation programme has had such a major setback come to an end. , and I would like to thank all those who have participated so far and so fully to this exacting programme. The Civil Justice Council has helped parties overcome many difficulties in on its way to the agreements achieved in RTA cases, and these have brought greater predictability and proportionality to the costs process. The Civil Justice Council will now review its mediating role.
I am sure that both the claimant lawyer and insurer groups are fully aware of the implications of failing to reach agreement for EL claims, and that they recognise that necessary further solutions to the “costs war” may now have to be imposed taken out of their hands.
What has been achieved to date, has been achieved through maturity and consensus, and I hope that the positive manner in which discussions have been conducted will continue, and that common sense will encourage the parties to keep talking.
I will be very unhappy to see any return to the unproductive skirmishing that has blighted the courts in recent years, however I am sure that the parties to the mediation did not make their decisions blind to the implications of non-agreement.
Although the CJC will now withdraw from mediation process, I hope sincerely that further discussions between the parties are able to take place. I also hope that claimant, defendant and insurer representatives continue their valuable support to the Council's costs programme, and will participate fully in the development of further initiatives such as costs budgeting.”