How much does it cost to issue my life changing injuries case in Court?
In life changing injury cases, clients are often surprised to learn how much it costs simply to commence (that is ‘issue’) legal proceedings so that a Judge can eventually determine whether the opponent is liable, and if so, what amount of compensation must be paid.
Asking what a client thinks might be payable simply for having the Court accept their case in order that it can be progressed is often met with stoney silence. It might be inferred that most would have thought that, like health and education, justice was somehow covered by the taxpayer. Of course, to a significant extent it is, but Court users also have to pay their way.
When they ask ‘how much?’ and are told the answer, it is rare for a client to respond with meek acceptance. What is more common is to be asked (in the midst of wide eyed incredulity) to repeat the answer or to be assured we are surely not serious.
‘Just to commence proceedings in Court?’ is a question that we are usually then asked, having revealed what the ‘issue fee’ is.
In the life changing injuries cases we are instructed in (and indeed in all cases involving personal injury where the value of the compensation being sought is more than £200,000) just to commence proceedings in Court costs £10,000*.
Most clients respond to the effect that litigation seems a rich person’s sport – a luxury beyond the reach of most. They may well ask ‘how most people could possibly afford to find £10,000 to bring Court proceedings where their lives have been turned upside down by life changing injury?’.
As always, there is a bit more to it: conditional fee agreements (no win no fee arrangements) mean the client will rarely have to find the money ‘up front’. If the case is successful, the Court fee will usually be recovered from the Defendant. If the case is not successful, the client is likely to be protected (indemnified) by a legal expenses insurance arrangement.
But the Court issue fee must be paid up front on the client’s behalf by their solicitor (as do other Court fees incurred as the case progresses to Trial); and the legal expenses insurance indemnity requires a premium to be paid (no win no premium) by the client – and that premium is not recoverable (save a part of it in clinical negligence claims).
It is also possible that a client might qualify under the Help With Fees Scheme for a Court Fee Remission. To be eligible applicants must have limited savings or be in receipt of certain benefits or have limited income**
The Scheme was introduced ten years ago. It has been in the news recently*** because the Government is consulting on revisions to the eligibility criteria. Inflation means significantly fewer people can take advantage of it now than could 10 years ago. That potentially deprives some of access to justice or makes access to justice more expensive (where there is no Court Fee Remission).
In life changing injuries cases many will end up paying fees charged by the Court (whatever they are). If the case is unsuccessful the legal expenses insurer is likely to have to pay out more for a larger number of Claimants who are not eligible for remissions. That means Claimants who need legal expenses insurance potentially paying a higher premium. Successful cases generate premium revenues that allow the legal expenses insurer to cover the collective cost of losing cases. This will include Court fees that fewer people can secure remissions for.
More subtly, the losing party who is responsible to pay costs in successful cases and who may make commercially minded global offers to settle the sum of costs payable, may leave the Claimant having to meet a larger costs shortfall in cases where the £10,000 Court fee has not been remitted than otherwise would have been the case had there been a remission. The Claimant is then faced with having to haggle with their solicitor to try and narrow the gap between what the Defendant pays towards their costs and disbursements and the total of the costs and disbursements incurred. Does that drive a wedge between a successful Claimant and their solicitor? Possibly. It is certainly a subtle, often unappreciated behind the scenes factor related to fewer Claimants being eligible for a Court fee remission.
If a client is eligible, they should be advised to, and claim the remission. If having paid the Court issue fee, and other Court fees, they don’t claim the Court Fee Remission, they are unlikely to persuade the Court that the Defendant should pay it. That means their compensation would reduce by £10,000 or more before any other deductions are even considered.
Paying such a significant sum to the Court – and who ultimately pays it anyway and in what circumstances can provoke interesting points of discussion. Some might say ‘Court users should pay their way over and above what the taxpayer is committed to here – someone has to, who better than the Court users?’ On the other hand, some will say ‘the Defendant should pay: they caused the injury, this is a consequence of it’. That is of course what usually happens where the case brought by the Claimant is successful. But it doesn’t happen where the case is unsuccessful. The Claimant cannot recover what they have paid out in that situation. Then of course there are others who will ask ‘why should the Defendant have the ‘windfall’ of the Claimant’s eligibility for fee remissions?’.
There are no easy answers to these questions. Much depends on your politics and your view of the world. It seems that many would surely agree justice costs money and that money must be found from somewhere. It is a fact that not everyone has the means to pay and the idea of a Help With Fees Scheme would seem to most to have merit; just as it seems wrong to expect Defendants to pay the fee in every case and irrespective of whether the claim is defeated or not.
Irrespective of where the casual observer sits on all of this, it doesn’t seem likely that clients will stop asking the ‘just to commence proceedings?’ question any time soon.
‘£10,000?!’.
If you want to read more about Court fees, and Court Fee Remissions and the Government’s consultation use the links below. To read more on legal costs and related topics try our BIG FAQs series. To speak with one of our experts, please call us on 01788 579579 or email seriousinjuries@brethertons.co.uk. We are here to help.
* Make a court claim for money: Court fees - GOV.UK (www.gov.uk)
** Get help paying court and tribunal fees - GOV.UK (www.gov.uk)
*** Revising the ‘Help with Fees’ remission scheme – protecting and enhancing access to justice
Life Changing Injuries Partner