Civil Justice Council publishes its synopsis of the 3rd costs committee meeting


The Civil Justice Council has published its synopsis of the 3rd costs committee meeting, which was held on 25th July 2013. The 14 strong committee, chaired by Mr Justice Foskett, is tasked with…

  • Conducting a comprehensive, evidence-based review on the nature of the Guideline Hourly Rates (GHR) in order to make recommendations to the Master of the Rolls by January 2014;
  •  Reviewing the GHR on an annual basis in order to make recommendations to the Master of the Rolls regarding how they need to be updated; and
  •  Monitoring the operation of the costs rules, in consultation with the Ministry of Justice, and where appropriate, making recommendations.

The Committee then went on to discuss the statistical validity of the information it ha gathered so fa, and the ways in which it required supplementing. It concluded that further information was required on:

Overheads

A finer breakdown of overheads in order to assess what was reasonable.

Additional costs

Further data on the additional costs incurred by firms on National Insurance, pensions and other benefits.

Realisation rate

Further data on the proportion of hours worked and recovered by firms (rather than the proportion of the bill).

Regional breakdown

Further data from some regions in England and Wales and in order to sub?divide the data relating to London.

Trainees

More data was needed on Band D generally.

Profit

It was suggested that the available data might be cross?checked with similar professions. The Committee discussed how and to what extent it should challenge the breakdown that seemed to be emerging: that something in the region of a third of a firm’s income was accounted for by salaries, overheads and profit.

Find the full synopsis here.

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