As a fee-earner acting on behalf of claimants, I am not surprised that there has been a small (if notable) increase in the number of cases issued following the introduction of fixed recoverable costs (see [2007] Gazette, 8 March, 1). However, in my experience it is not a sneaky trick to increase costs.
Quite simply, if insurers acted reasonably, then claimant solicitors would not have to commence court proceedings; indeed, if defendants acted reasonably, then it is the claimants who would be penalised at trial and assessment of costs.
When insurers admit that they are making a low offer as a matter of policy, because they do not think the claimant will take the claim to court, there can be no doubt as to whose conduct is forcing claims to be litigated.
The rule for defendants is simple - act reasonably, put forward reasonable settlement offers, and cases will not be litigated. Fail to negotiate and settle straightforward claims, and the penalties are yours to pay.
Lee Harris, Blake Lapthorn Tarlo Lyons, Segensorth, Hampshire
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