Lord Justice Birss has announced significant developments in cost management for the legal sector.
- New rules on costs budgeting and guideline hourly rates for barristers are being formulated.
- The Civil Justice Council’s 2023 review focuses on simplifying legal cost management.
- Discussions at the ACL roundtable highlighted AI’s potential role in legal cost management.
- Yorkshire solicitors may benefit from predictable legal fees and streamlined case management.
Lord Justice Birss, the deputy head of civil justice, has confirmed that new rules on costs budgeting and guideline hourly rates (GHR) for barristers are in progress. These proposals were discussed during a roundtable event hosted by the Association of Costs Lawyers (ACL) as part of the Civil Justice Council’s 2023 review on costs.
The roundtable, attended by leading figures in the legal costs sector, examined ongoing challenges in applying the rules of proportionality to legal costs. Discussions also covered the potential of integrating artificial intelligence (AI) to assist with these tasks in the future.
A major focus is the introduction of a ‘costs budgeting-lite’ system, which aims to streamline the costs budget process. After making straightforward adjustments like increasing GHR for solicitors, the spotlight is now on testing this new system and determining if GHR should apply to barristers as well. Although it remains uncertain whether standardised hourly rates will be set for barristers, the emphasis is on establishing effective systems to aid in the summary assessment of their fees.
Jack Ridgway, chair of the ACL, noted judges are increasingly permitting parties to exchange budgets and have their costs experts reach agreements, a practice that has expedited budgeting in certain courts. The sentiment was echoed by David Marshall from the Law Society and Steven Green from Irwin Mitchell, who pointed out that simplifying costs budgeting could benefit both legal professionals and their clients.
For lawyers based in Yorkshire, the adoption of ‘costs budgeting-lite’ could enhance cost management efficiency in civil cases. This simplified approach potentially reduces the amount of time and effort required to prepare extensive costs budgets, thereby facilitating better case management. Moreover, it may lead to swifter resolutions in cost disputes, conserving resources for both lawyers and clients.
The role of AI was another key topic at the roundtable, with Ridgway suggesting that AI could hasten the drafting of bills, although human expertise will remain crucial for complex tasks. Green highlighted the necessity for accurate time recording by lawyers if AI integration is to be successful, an area that has posed challenges over the years.
The implications of these discussions are significant for Yorkshire lawyers. The potential expansion of GHR to include barristers is anticipated to bring greater predictability to legal fees, a change that could be particularly advantageous for solicitors in the region who work within constrained budgets. This shift should enable more precise client advisement regarding the potential costs associated with engaging barristers, ultimately allowing Yorkshire’s small and medium-sized firms to provide enhanced transparency and efficiency in their services.
These developments represent a progressive step towards more efficient legal cost management in the UK.
