New business models
Although it is early days, the new rules on whiplash claims and the launch of the new digital portal are prompting firms to reassess their business approach in this area, says John Cuss, vice-chair of the Law Society’s Civil Litigation Section Committee. The reforms, first announced by chancellor George Osborne (pictured) in 2015 and originally meant to come into force in April 2019, have been repeatedly delayed so many firms are still working on a wait-and-see basis. Others have exited the market (either altogether, or to focus only on the higher end), while some have evolved to adopt new funding models to serve lower-value claims, for example under either conditional fee agreements or damages-based agreements, according to Cuss. A small number of firms are also considering ‘unbundled legal services’ where they would provide a limited legal advice service on aspects of claims such as a complicated self-employed loss of earnings claim or a complex liability
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By John Hyde2021-03-02T11:49:00+00:00
The government remains keen to increase the small claims limit for employers’ liability and public liability – despite leaving them out of legislative changes affecting personal injury claims.
A series of statutory instruments last week set the 31 May start date and tariffs for RTA reforms. These paved the way for the small claims limit to rise to £5,000 for whiplash claims – encompassing almost all of them – meaning that legal costs are no longer recoverable.
The Ministry of Justice has previously bracketed the whiplash changes with a similar increase – albeit to a £2,000 rather than £5,000 limit – for EL and PL claims, but these were absent from last week s legislation. A spokesman told the