Costs Challenge- Litigation Funding

The High Court has issued a second judgment in quick succession around file disclosure in a bid to stem the flow of satellite litigation against law firms. Senior Courts Costs Office judge Master Jennifer James said the courts were seeing an increasing number of former clients coming back to their firms to query historic bills. The problem stems from 2013 when reforms authorised the deduction of costs to a maximum of 25% of the damages recovered and the development of new business models by solicitor firms. James said claimants who were previously represented under a conditional fee agreement had seen their damages ‘depleted’ and are now taking issue with deductions, in some cases encouraged by legal advice that they may have a case.