We previously reported the Government's announcement that it will not increase the court fee payable to issue divorce proceedings, but that civil fees would be affected.
The increase in Court fees for civil claims now comes into effect on Monday 9 March 2015, and they are very significant! The increases affect claims for 'specified' amounts of money and for 'unspecified' estimated amounts of money.
The Law Society, with other legal professional bodies, has criticised the fee increases and has sent a pre-action protocol letter to the Ministry of Justice. The main basis for the criticism is that, in particular, a lot of individuals and small companies will seriously have to think carefully about whether they can afford to issue claims. It could be disastrous for a lot of small companies chasing debtors. Are we sadly moving into an era of litigation for the elite and wealthy and away from access to justice for all? With reduced numbers of county courts, difficulties in retaining court staff and lengthy waits for interim and final hearings court users might wonder if they are getting value for money and this is by no means a criticism of court staff and the judiciary.
It’s likely that a lot of claims will be issued in this week. If you have got a potential claim brewing then to avoid the increases seriously consider issuing this week.
Below is table produced by The Law Society giving examples of the fee increases.
Example fee increases:
|
Value of claim £ |
Fee now £ (paper) |
New fee £ |
Increase in fee £ |
% increase |
|
20,000 |
610 |
1,000 |
390 |
64% |
|
40,000 |
610 |
2,000 |
1,390 |
228% |
|
90,000 |
910 |
4,500 |
3,590 |
395% |
|
150,000 |
1,315 |
7,500 |
6,185 |
470% |
|
190,000 |
1,315 |
9,500 |
8,185 |
622% |
|
200,000 |
1,515 |
10,000 |
8,725 |
576% |
|
250,000 |
1,720 |
10,000 |
8,280 |
481% |
Michael Kilbane
3 March 2015
