The Dangers Of Premature Litigation

‘Litigation happy’ claimant solicitors who issue proceedings prematurely to escape being bound by the Road Traffic Accident (RTA) Fixed Recoverable Costs Scheme should beware the firm line the courts are now taking in these matters, according to Chris Perry of insurance law experts Browne Jacobson.

Introduced in October 2003, the scheme was designed to ensure that claimants in RTA insurance cases would benefit from speedier settlements by capping the legal costs which were recoverable from defendants in cases where the parties settle ahead of litigation. However, the legislation has since proved to have some unintended consequences, with the number of RTA cases reaching the courts increasing by some 43 per cent in the 18 months following its introduction.