ZebraTD Technical Advisory Board April 2016 newsletter

TECHNICAL ADVISORY BOARD Spring 2016

Spring Report to PiKS The ZebraTD Technical Advisory Board (TAB) meetings have gathered real momentum in the last four months.

While many of the subjects discussed by the TAB at these meetings remain under the Chatham House Rule for now, our peer-regarded Board members offer incredibly valuable advice for PIKS Hub members and often give us first and exclusive access to significant industry issues, changes, potential solutions and campaigns.

In this Spring Report we’ve outlined what we think are the key factors affecting practitioners today, based on our very recent April 2016 TAB meeting, namely: 1. The Access2Justice Campaign: Its challenge to Government proposals to: - Increase the Small Claims Limit to £5,000 - Reform minor soft tissue / whiplash injury claims 2. The HMRC Employment Schedules Legal Challenge 3. Fixed Recoverable Costs 4. Changes to the Civil Procedure Rule & Practice Direction 5. The new Costs Bill Format 6. What is ZebraTD? 7. ZebraTD TAB Members

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1.

Access2Justice

PIKS members may already be aware of the current campaigns to challenge the Government plans to reform the Small Claims Limit and soft tissue and whiplash motor injury claims.

In total, they are: Access2Justice (a revamped version of the original Access to Justice Group/AJAG, launched to limit the impact of the Jackson Reforms); The Law Society & APIL’s Strategic Alliance and; Thompsons Solicitors (which has invested in heavy social media and PR campaigns to highlight the impact of widespread reform on access to justice).

While formed as separate bodies, each plays a collaborative role in challenging the proposed Government reforms, and are highly visible on social media and in the press.

However, as TAB members articulated at this meeting, ‘these groups can only do so much to help save PI practitioners’.

Andrew Twambley (ZebraTD TAB member, CEO, InjuryLawyers4U & Managing Partner, Amelans Solicitors), is a key experienced voice in the Access2Justice campaign, renewed and led by Martin Coyne, Ralli Solicitors.

It is clear from Andrew’s presentation at the TAB meeting that A2J has a clear strategy, and its committee members and leaders are devoting unprecedented and voluntary time and money into resourcing the campaign – including the employment of full time economic advisers, parliamentary and lobbying experts and media managers.

“The only argument the insurers can throw at us is that we as solicitors are protecting our own backs and income. No apologies here, we need to protect our jobs; if we didn’t have jobs then we wouldn’t be able to represent claimants.

We’re not going to back down on that.”

“If we don’t fight back, this reform will happen and the public will have rights taken away from them. If we do nothing, we’ll achieve nothing; if you contribute towards the fund, we’ll have a fighting chance; if you support this, we’ll do the best we can” he said.

The call to arms is on; the Claimant PI sector has been warned ‘not to sit back and rely on others’ in this fight.

A2J has surrounded itself with incredibly experienced and competent advisers to help focus limited funds and personal investment to challenge every statement and claim made by both the Government and the insurance industry.

The result of increasing the Small Claims Limit to £5,000 is simple: the vulnerable would not receive access to justice, and there are also growing inequality issues coming out of the insurance sector’s proposed fraud statistics.

Twambley is adamant that the PI sector has to work together for the campaign as a whole, to have an impact on the proposals.

He said: “We will take every statement made by the ABI, show that they’re wrong and fight them – some statements are absolutely absurd, in particular, the fraud statistics - a scandal in themselves.

“Please help fund, give as much as you can. It’s easy to sit back and say that someone else will fund it but we’ve estimated the campaign will cost around £470,000. Martin and many others are giving staff and 100% of their time for free. Everyone really has to contribute.”

“We need to use the time prior to the consultation to ready ourselves.”

To contribute to the fund, please visit: accesstojusticeactiongroup.co.uk/contribute Social Media Please do support A2J and provide evidence where you can on social media through the following platforms: Twitter: @ccesstojustice & using the hash tag #A2J Facebook: Facebook/Access2Justice About A2J A2J is not a membership organisation, but it is a limited company and is collecting financial support from practices and affiliated industries across the PI sector. It has helpfully provided a schedule of funding contributions, based on turnover for legal practices, outlined below.

Please note that the schedule of funding contribution is a suggestion only, and that contributions be anonymised.

However, as this campaign is for the benefit of all claimant PI firms in England and Wales, led by the best possible advisers and champions, we urge all PIKS members to consider donating as much as they can and to please spread the word.

Full details, including an overview of the potential reform impact, key players, supporters and useful information are available online at: accesstojusticeactiongroup.co.uk

2.

The HMRC Employment Schedules Legal Challenge

The inability of HMRC to provide work schedules in less than 12 months compromises a claimant’s ability to comply with the CPR and threatens access to justice for claimants.

It is a requirement to provide an HMRC employments schedule to comply with the Disease & Illness Protocol. Insurers argue that the protocol period cannot start without one. This is creating substantial delays in advancing compensation claims, possibly damaging genuine claims, and significantly distorting viability of the government’s proposals to reduce the cost of litigation and improve the turnaround time.

The problem affects a range of claimants with different illnesses and claims from NIHL cases, to claimants with terminal work related cancers.

Chris Fry (ZebraTD TAB member and Managing Partner of Unity Law), assisted by Theo Huckle QC and Caoilfhionn Gallagher of Doughty Street Chambers, are proposing to challenge the delays and are seeking assistance from firms interested in joining the action.

They are particularly keen to tackle the issue before the Civil Justice Committee produces its report into extending the Portal arrangement and costs provisions.

For further information on this campaign and to get involved, please contact Chris Fry, Unity Law: Chris.Fry@unity-law.co.uk

3.

Fixed Recoverable Costs Kevin Latham, Kings Chambers and ZebraTD TAB member, offered some useful practitioner advice in light of the ‘claimant victory’ in Broadhurst & Anor v Tan & Anor [2016] EWCA Civ 94 – cases in which the Claimants beat their own Part 36 offers of settlement.

He said: “The question raised here was: ‘Do you recover indemnity costs in those circumstances and if you do, under a fixed costs regime, then how does an indemnity based award tie in with costs that are fixed in any event?”

“Ignoring fixed costs, if it’s an indemnity award, then you can recover costs on the indemnity basis,

subject to detailed assessment – it’s a big victory for the claimant market. However, there needs to be a bit more clarity as to exactly where this would apply, as ordinarily you wouldn’t have indemnity costs for the entire case.”

From a practical perspective, Kevin’s practice point for claimants is that: “If claimants are considering making a Part 36 offer themselves, it might be sensible to make that offer just before entering into the next stage, or just after entering into the next stage; if the offer is not accepted and you go back in, claimants will recover the entire fees and assessed costs thereafter for that stage.”

4.

Changes to the Civil Procedure Rule & Practice Direction

Kevin Latham, specialist costs barrister at King Chambers, also outlined two key changes for claimant practitioners that came into force on the 6 April 2016.

Firstly, a change to the CPR that affects cases issued after the 6th April 2016.

Kevin said: “There has been a very substantial and significant change made to the CPR which is helpful to claimant practitioners in a sense that: 1) any claims made on behalf of a child won’t be subject to costs budgeting. Anything with a child is out. 2) When the child reaches majority during a case, the case still won’t require costs budgeting, unless the court decides otherwise.”

5.

The new Costs Bill Format

Claire Green, ZebraTD TAB member & owner of Claire Green Legal Services, outlined the proposed launch of a new Costs Bill Format that is a more ‘simplistic’ and ‘flexible’ version to the full-scale proposals recommended by the Hutton Committee earlier this year.

While LJ Jackson gave the Hutton Committee a clear brief to be as detailed and as prescriptive as possible in its new Costs Bill Format proposal, its recommendations have been embraced in spirit and mixed with a ‘lite’ and more flexible approach to creating a new costs bill form. This was debated and introduced at The Law Society of England & Wales Civil Litigation Conference in London on 21 April 2016.

The full keynote address made by LJ Jackson at the conference can be found here: www.judiciary.gov.uk/wp-content/uploads/2016/04/ speech-lj-jackson-bill-of-costs.pdf

“One thing worth noting here is the wording – this change is in reference only to claims made on behalf of a child, not by a child.”

“In this sense, and while I haven’t yet seen this happen, I wonder if this change might also apply to dependency claims made on behalf of a child.”

Secondly, he added: “There has been a practice direction change affecting cases where the claimant’s life expectancy is severely limited (defined as five years or less remaining). These cases still fall within the CPR so, should still be cost budgeted but the practice direction means that the court will ordinarily dis-apply costs management in these circumstances. This is a pretty strong steer that those cases won’t be costs budgeted either.”

6.

What is ZebraTD?

ZebraTD™ is a personal injury focused business offshoot of ZebraLC™. It brings a sector first: an online and on demand knowledge share and risk outsourcing service in complex areas, such as clinical negligence, industrial disease and serious injury.

Why has it launched?

Whilst ZebraLC™ has technical coverage in all areas of legal service, a number of the business’ major M&A, law firm diagnostic and bank funding projects have been within the personal injury sector.

This provides a unique insight into the risk, value and opportunity in legal businesses operating within this specialist sector.

For injury litigation of the future, ZebraTD™ supports legal businesses in the successful delivery of profitable, efficient and risk aware personal injury legal services. The offshoot is supported by a national cohort of experienced technical and commercially focused injury experts with a proven track record.

All technical experts are trained under Zebra’s core methodology and individually selected. The team works in a collaborative buddy system – sharing knowledge and enabling ‘best of breed’ technical development.

PI Knowledge Share (PIKS) Hub Zebra’s knowledge platform provides a totally unique offering to the personal injury sector. All ZebraTD™ clients are invited into its specialist Knowledge Hub. This is a bespoke collaboration platform to enable clients to have multi interface access to the Board and Zebra’s team of specialists. Whether via a web browser, tablet, iPad, iPhone or Android, clients can collaborate, knowledge share and support each other with instant interaction.

ZebraTD™ also offers a ‘white labeled’ outsourcing service in complex litigation areas, such as industrial disease, clinical negligence and serious injury.

Experienced experts form an unrivalled outsourcing team. Already proven as ‘excellent’ in an existing large volume clinical negligence contract, the team, where required, can work remotely via a law firm’s Proclaim system.

Delivering knowledge share via innovative technology has been a key driver in establishing ZebraTD™ and the collaborative PI Knowledge Hub is a unique way of offering clients unique addedvalue.

For further information on the ZebraTD PIKS Hub, please visit: www.zebratd.co.uk/join-piks www.zebratd.co.uk

7.

ZebraTD TAB Members Vicki Acres (Chair) Head of Technical & Risk Outsourcing, ZebraLC & ZebraTD Andrew Twambley CEO, InjuryLawyers4U & Managing Partner, Amelans Solicitors Chris Fry Partner, Unity Law & Fusion Law Claire Green Claire Green Legal Services & Policy Officer for the AssociaMon of Costs Lawyers & ZebraLC Consultant Professor Dominic Regan The industry’s most knowledgeable Costs commentator Kevin Latham Barrister at Kings Chambers, specialising in costs liMgaMon Terry Lee Consultant, Wollen Michelmore & ZebraLC Tracey Graham Director of Industrial Disease & MulM-Track, Your Legal Friend