Jackson Reforms: An Update

As the profession edges closer to the (current) implementation date for the Jackson reforms in April 2013, when The Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force, further announcements are being made as to the details of the new costs arrangements.

One recent example is a small change to the existing Part 36 regime, whereby a defendant will have to make an additional payment to a claimant, where the defendant rejects a claimant's Part 36 offer but fails to beat the claimant's offer at trial.

It has come as no surprise that the additional 'sting' will be 10 per cent of the claimant's damages award (or in non-damages claims, 10 per cent of costs). For claims over £500,000.00, however, it is likely that the penalty will be limited to a maximum sum of £75,000.00. The existing penalties, such as the payment by the defendant of the claimant's costs on an indemnity basis, will also continue to apply.