By Catherine Baksi


Two law firms have sent letters before action to the Legal Services Commission (LSC) claiming damages for financial loss as a result of the unified civil legal aid contract, which they say breaches EU law.



The Law Society revealed the existence of the claims - but not the identity of the firms - as it awaits the outcome of a Court of Appeal decision on its judicial review proceedings over the contract.



In July, the High Court ruled that the LSC was in breach of procurement legislation, as the contract did not comply with requirements relating to amendments to the technical specifications such as peer review processes and performance indicators.



However, Judge Beatson rejected Chancery Lane's argument that the LSC had breached a general obligation of transparency. He awarded the Law Society 75% of its costs.



Both sides appealed and the LSC has agreed a 'standstill' arrangement in respect of the two firms pending the Court of Appeal decision.



The Law Society has been advised by leading counsel that the time limit for such claims expires on 13 November - three months after the date when grounds for bringing proceedings arose. Firms were notified of the contract specifications on 13 August.



Chancery Lane has advised any firms which may wish to make a similar claim against the LSC to take their own legal advice before the expiry of the time limit.



An LSC spokesman said it was aware of the matters, but due to the ongoing litigation it could not comment at this stage.



He said: 'We believe the introduction of civil fixed fees on 1 October was lawful and have received advice from leading counsel confirming this. Fixed fees are a desirable and necessary step in the move to a competitive market: they will also benefit firms in terms of reduced administration and billing costs.'