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Jean-Yves Gilg

Editor, Solicitors Journal

Government 'selling justice' as it celebrates Magna Carta

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Government 'selling justice' as it celebrates Magna Carta

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Legal bodies say court fee increase amounts to a tax, reports Catherine Baksi

Lawyers are set to challenge plans to hike court fees by 600 per cent, accusing the government of 'selling justice' and breaching the principles of Magna Carta.

The Law Society, Bar Council, CILEx, Forum of Insurance Lawyers, Association of Personal Injury Lawyers, Motor Accident Solicitors Society, Chancery Bar Association, Action Against Medical Accidents and the Commercial Bar Association have issued a pre-action protocol letter - the first stage in issuing judicial review proceedings.

The move will be an embarrassment to the government at the start of its three-day Global Law Summit, marking the 800th anniversary of the Magna Carta.

The bodies say the fee increase is tantamount to 'selling justice' and contrary to the principles of Magna Carta, which says 'to no one will we sell, to no one deny or delay right or justice.'

They argue that the government does not have the power to raise fees for the purposes it has stated in the consultation - to make 'departmental savings' and that it breached its own consultation principles by failing to give reasons for the enhanced fees.

They also claim the government is proceeding without evidence to justify the increases, which they say amount to a tax.

The Law Society has asked the government to provide information on how much money it proposes to raise through enhanced fees and what it will spend the money on. It has also asked it to explain how modernisation of the court services will appear in the government's accounts.

Law Society president Andrew Caplen said: "The government's policy on 'enhanced court fees' amounts to a flat tax on those seeking justice.

"The government's hikes - due to come in from April - will price the public out of the courts and leave small businesses saddled with debts they are due but unable to afford to recover."

He said: "State provision for people to redress wrongs through the courts is the hallmark of a civilised society."

The court fees affect debts owed to small businesses as well as personal injury and clinical negligence claims.

In a recent survey, solicitors told the Law Society that higher court fees would put people off going to court when they have genuine claims and provide an incentive for large companies to deny liability, knowing that the injured party would not be in a position to fund expensive court fees.

Data from nearly 200 solicitors found that the total value of cases brought by individuals would fall by around one-third under higher court fees and half for small and medium-sized companies.

They estimated that, overall, the total value of their work in the affected areas could fall by between 27 to 36 per cent as a result of the fee increases.

An MoJ spokesman said it has received the letter and will respond in due course. He added that the government will 'robustly defend' its proposals.
 
Justice minister, Shailesh Vara, added: "Our courts play a critical role and it is vital that the principle of access to justice is preserved by a properly funded service. It is only fair that wealthy businesses and individuals fighting legal battles should pay more in fees to ease the burden on taxpayers.
 
"These changes to the fees structure won't apply to 90 per cent of claims, and waivers will also be available for those who cannot afford to pay."