10 news/legal expert


What is the impact of increased litigation costs?


On March 9, 2015, the Government introduced substantial increases to the issue fees payable to the court in order to commence proceedings. These increases are likely to have an impact on many parties seeking to litigate claims worth in excess of £10,000, writes Glanvilles partner Johnathan Arman


The changes will not affect lower value claims for a value of up to £9,999, as the court fees for these remain unchanged.


Claims of this value will invariably be allocated to the small claims track of the county court, which carries with it the general rule that parties will not be able to recover their legal costs from the losing party, save for certain fixed costs.


Prior to March 9, 2015, court issue fees for claims in excess of £10,000 were payable at a more reduced level. For example, claims for a value of between £15,000 and £50,000 attracted a


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court fee of £610, whereas claims for in excess of £300,000 attracted a court fee of £1,920.


The recent increases mean that instead of having the previous tiered structure based on the value of a claim, it is now the case that any claims for a value of £10,000 to £199,999 will attract a court fee of 5% of their value. Any claims for greater than £200,000 will attract a fixed court fee of £10,000.


The Government has stated that the reason for this change is to move towards a position where the court system is able to meet the cost of its own services,


without additional contributions from the taxpayer.


However, while this change is not likely to have a drastic impact on claimants with deep pockets, it may dissuade smaller companies and individuals from litigating matters, potentially in situations where these parties have a rightful claim to pursue but do not have extensive resources available.


Two examples of the financial impact of these increased fees are as follows:


Claim for £45,000:


Pre March 9, 2015 cost – £610 Post March 9, 2015 cost – £2,250


Leading southern law firms join forces


Two of the south‘s leading law firms have announced they are to merge in a deal which will create one of the largest law firms in the Central South region.


Trethowans, which has offices in Southampton and Salisbury, is joining forces with Poole-based Dickinson Manser, with the official merger set to take effect in October.


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The deal will see the two firms combining their expertise to offer clients enhanced legal services in a range of specialisms.


The firms boast commercial clients including international and national household brand names, owner-managed businesses, entrepreneurs and major regional employers across the UK. They also work with individuals, such as landowners, local families, property developers and trustees.


Trethowans has been providing high-quality legal services for nearly 150 years and has 22 of


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its leading lawyers ranked by independent industry body, Chambers.


The new firm will continue to be known as Trethowans and current managing partner Chris Whiteley will continue in his role.


He commented: ”We‘re delighted to announce the merger with Dickinson Manser, which is a well-established and respected practice. The deal comes just five months after Trethowans expanded into new Southampton offices, and operating in a third location is key to the ambitious plans we have for the future.”


Dickinson Manser senior partner Gary Pick added: ”Trethowans operates with values that match our own and by joining forces we will be able to offer an even greater depth of expertise to clients. As a team we remain committed to providing the best possible legal advice to both private individuals and commercial enterprises.”


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2015 Claim for £68,000:


Pre March 9, 2015 cost – £910 Post March 9, 2015 cost – £3,400


Details: Johnathan Arman 01329-282841/01243-792102 Johnathan.arman@glanvilles.co.uk www.glanvilles.co.uk


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