Costs lawyers gather strength as costs budgeting becomes more complex

Solicitors struggling to cope with complex costs budgeting; significant growth in costs lawyers' practices; and judicial inconsistency undermining the regime - these are just some of the findings of the Association of Costs Lawyers' (ACL) annual survey.

More than half (53 per cent) of respondents said they have seen a 'significant' increase in demand for costs budgeting advice in the past year, with a further third (28 per cent) saying it had increased 'slightly'. This is on the back of similar rises in previous years, while three-quarters expect even more instructions over the next 12 months.

As a result, 55 per cent of costs lawyers said they had grown their practices, taken on more staff, increased sales and marketing activity, undertaken more advocacy, and diversified, with alternative dispute resolution, work in progress valuations, and legal project management the key areas costs lawyers are looking at.

The survey also found nearly half (45 per cent) of respondents expect the number of costs lawyers to have increased in three years' time, while a quarter are looking to recruit a trainee in the next 12 months.

Jackson reforms

When it comes to the Jackson reforms, costs lawyers remain concerned about their impact. Two-fifths (40 per cent) said the reforms had discouraged solicitors from taking on less straightforward cases, and 31 per cent believed they had tilted the playing field in favour of defendants.

The chairman of the ACL, Sue Nash, said the Jackson reforms had ushered in a new era for costs lawyers - one where they play a critical role in managing costs from the start of a case to the end.

'It is satisfying to see how many [costs lawyers] are looking to spread their wings into other areas where their skills and experience - which cover far more than their core costs drafting role - can offer real value to solicitors, their clients, and others.'

Nevertheless, Nash said the results proved the costs management regime was far from perfect: respondents expressed concern over judicial consistency, with 52 per cent saying that how they felt budgeting was working depended on the judge they were before, and one in two (53 per cent) criticising 'solicitors [who] think they can do it - and they're wrong'. However, the number of respondents who said solicitors remained in denial or unaware of the demands of costs budgeting fell slightly, from two in five (43 per cent) to one in three (36 per cent).

Laura Clenshaw is the managing editor of Solicitors Journal

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