Working group set up by Civil Justice Council launches consultation on costs as digital justice system looms

A costs working group established by the Civil Justice Council (CJC) has launched a consultation paper that covers reviews of costs budgeting and guideline hourly rates amongst other issues.

Earlier this year the Master of the Rolls, Sir Geoffrey Vos, asked the CJC to take "a strategic and realistic look at costs, particularly given the ongoing transformation of civil justice into a digital justice system”.

The CJC agreed at its April 2022 meeting to set up a costs working group. The four areas covered by the consultation are:

  • A review of Costs Budgeting
  • A review of Guideline Hourly Rates (GHRs)
  • Examination of costs under pre-action protocols/portals and the digital justice system
  • Consideration of the wider impact of the extension of Fixed Recoverable Costs (FRC)

The consultation paper says: “ The Working Group’s remit is to take a strategic approach, recognising that access to justice for all plays a vital part of the rule of law in a democratic society and that affordability is fundamental to such access. The Working Group understands the importance of detail. However, it is not part of the group’s remit to conduct an examination of the fine-grained aspects of any of the areas under consideration.

“The costs review is intended to be holistic in nature (albeit focusing firmly on the specific areas identified above), acknowledging that while each of these topics is important in itself, their interaction with one another and the wider context of civil justice as a whole, is crucial.”

The paper says that wider context had many dimensions but three in particular were worth highlighting at the outset:

  1. Digitisation: “This has the potential to transform civil justice and reduce its cost and complexity for many court users. Its impact is only beginning to be felt. The costs system in civil justice must be fit for purpose in a Digital Justice System. That will include costs incurred in proceedings before the court, and also costs incurred before court proceedings begin.”
  2. Vulnerability.: “The needs of vulnerable court users must always be taken into account. That is particularly so when changes are being proposed. Furthermore, unintended consequences should be avoided.
  3. The economic significance of the civil justice system: “A functioning civil justice system is the bedrock of the economy. Everyone, including individuals, small and medium sized enterprises, and larger organisations, is entitled to a clear and enforceable legal framework in which to conduct their affairs. Organisations need such a framework to be able to plan and invest for the future, secure in the knowledge that breaches of their rights can be remedied, and that their obligations can be enforced, if necessary. Accessible courts promote respect for rights and proportionate dispute resolution, even without the need for parties to go to court. Lengthy delays and excessive cost needlessly magnify the stresses caused by involvement in court proceedings, with knock on effects for society and the economy. If disputes cannot be resolved within reasonable time and in a proportionate manner, then the rule of law itself is undermined.”

The consultation will run for three months until 12 pm on 30 September.

Read the full consultation paper online (opens in a new tab).

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