Legal challenge begins on RTA fixed fees
6th February 2013
There has been an application made for a judicial review of the decision to cut fees for claims in the RTA portal, the application has been jointly made by the Association of Personal Injury Lawyers (APIL) and Motor accident Solicitors Society (MASS).
The MoJ is proposing to reduce all recoverable costs for RTA claims under £10,000 from £1200 to £500, this decision was taken in part after a government consultation with representatives of British Insurers who argued that because there is the ban on referrals being introduced as a part of the changes to the Legal aid, Sentencing and Punishment of Offenders Act 2012 (LASPO).
In a joint statement, APIL and MASS said: ‘Fees in the current scheme were not calculated on the basis of referral fees. So, by consulting only with insurers, the government’s proposal to make these cuts is both unfair and based on a misinterpretation of the facts.’
The judicial review will focus on the way the fee cuts were decided.
The groups argue that due to the proposed changes coming into play, it simply will not be cost effective to conduct cases through the portal.