Kerry Underwood

NO REPAYMENT OF STAGE 1 COSTS REQUIRED

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In JC and A Solicitors v Iqbal & Another [2017] EWCA Civ 355

 

the Court of Appeal held that in cases under the pre-2013 road traffic accident portal solicitors do not have to return the £400.00 Stage 1 fee where claims dropped out before Stage 2.

 

The post-2013 regime provides that no Stage 1 fee is payable unless Stage 2 is engaged and so the issue can no longer arise.

 

The Court of Appeal pointed out that the Stage 1 entitlement only arose once liability had been admitted “so that something solid will have been achieved for the protocol client by the time when the Stage 1 payment becomes due.”

 

The Court of Appeal noted that the protocol contained provisions for repayment of interim damages, but not for Stage 1 costs which were a final, and not an interim payment.

 

The Court of Appeal was critical of District Judge Phillips, sitting in Cardiff, who had considered the figure fixed by parliament as generous, a fact which appears to have influenced a judge not known for being sympathetic to personal injury claims.

 

On a separate point, dealing with the fact that Stage 1 costs were not payable at the end of Stage 1 in a case involving a child, the Court of Appeal points it out that that related to the separate provision in relation to children’s claims “because of the general principles which require the determination of such claims either to be made by the court, or made the subject of a court approved settlement.”

 

This reinforces the point often made by other courts that a Court Order is compulsory in a child’s claim and such claims must never be settled by way of parental indemnity.

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Written by kerryunderwood

May 30, 2017 at 9:01 am

Posted in Uncategorized

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