Lord Justice Birss, deputy head of civil justice, has announced that work is underway to introduce new rules on costs budgeting and guideline hourly rates (GHR) for barristers.
Speaking at a roundtable event organised by the Association of Costs Lawyers (ACL), he explained that these changes are part of the Civil Justice Council’s 2023 costs review.
At the event, experts discussed ongoing problems with applying the rules of proportionality to legal costs, and the potential role of artificial intelligence (AI) in helping with costs work.
The event, attended by leading figures in the costs sector, also highlighted ongoing challenges with the proportionality of costs, the role of AI in costs management, and the future of costs budgeting.
Introducing a “costs budgeting-lite” system
Birss LJ explained that, after some simple changes like increasing GHR for solicitors, focus has shifted to two big projects: testing out a “costs budgeting-lite” system and deciding whether GHR should also apply to barristers.
He admitted it’s not yet clear if hourly rates will be set for barristers, but stressed the need for better systems to assist in the summary assessment of their fees.
Jack Ridgway, chair of the ACL, said judges are now more willing to let parties exchange budgets and have their costs experts agree them. This has made budgeting quicker, especially in some courts.
Other speakers, including David Marshall from the Law Society and Steven Green from Irwin Mitchell, agreed that simplifying costs budgeting would help both lawyers and clients.
For Yorkshire-based lawyers, the introduction of “costs budgeting-lite” could streamline the process of managing legal costs in civil cases, especially in the county courts. This simplified approach may reduce the time and effort needed to prepare detailed costs budgets, making it easier to manage cases efficiently. It could also lead to quicker resolution of disputes over costs, saving time for both legal professionals and their clients.
The role of artificial intelligence
There was also discussion about AI’s role in the future. Ridgway said AI could make drafting bills faster, but human expertise will still be needed for more complex tasks.
Green added that for AI to work, lawyers need to accurately record their time, which has been an issue for years.
How will this affect Yorkshire lawyers? Yorkshire Legal News weighs in:
The changes discussed at the ACL roundtable, including the introduction of costs budgeting-lite and the potential extension of guideline hourly rates (GHR) to barristers, will likely impact lawyers across the UK, including those in Yorkshire.
The potential extension of GHR to barristers would bring more predictability to legal fees, which could benefit Yorkshire solicitors and their clients. If barristers’ fees are more clearly defined by GHR, solicitors can better advise clients on the likely costs of engaging barristers, which is especially helpful for our regional small and medium-sized firms who are often working within tight budgets.
Overall, these changes could help Yorkshire lawyers offer a more transparent and efficient service to clients, while reducing some of the burdens of the current system. However, like all changes, there will be an adjustment period as we all must adapt to new practices.
Image: Canva
A version of this article was originally published on Claims Media
Josie Miller
Josie Miller is Editor of Yorkshire Legal News. She welcomes comments and questions.
