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(a) ‘The law is fault-based. It requires a claimant to establish a duty of care, breach and causation of loss. These are not always straightforward matters and if a claimant fails to establish any one of them, his claim fails'.
(b) "To test more cases would require more parties to go to court, and ...the ‘obvious solution’ is to introduce ‘reasonable and proportionate’ fixed legal costs".

Clearly (b) does not follow from (a). If it is 'not straightforward' to establish all the elements of a particular case, then it will require a significant amount of work. In what other field of work would it be said that a person should not get paid for the work that it is necessary to do in order to achieve the result that the customer wants?

Or is the noble lord saying that, as in any other field of work, the customer and the supplier can freely contract for the delivery of a service at an agreed price and the court thereafter has no role to play in deciding whether that is a fair price or not - it is just part of the overall loss suffered by the customer in getting his wrong put right/compensated, and included in his claim? One suspects not.