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The Association of Costs Lawyers recently issued a press release revealing the results of a survey amongst Costs Lawyers as to their predictions as to the future of costs work.
This was reported in the New Law Journal with the following explanation as to the impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012:
“clients will pay their own costs out of their damages and are therefore likely to take a keen interest in the amount of costs their solicitor racks up”
Not an entirely accurate summary of the change which will mean that it is just the success fee that will be paid out of the client’s damages. However, it is not dissimilar to a number of the statements that were made in the House of Lords as the Bill was making its way through. The confusion over the issue does suggest that it will not be easy for claimant solicitors to explain to their clients how this will operate unless they are prepared to guarantee the client keeps 100% of their damages.