The Justice Gap

Fixed Recoverable Costs (FRC) block lawyers from pursuing claims WHAT DRIVES THE JUSTICE GAP? As legal costs rise and recoverable amounts stay frozen, fewer victims can obtain legal representation, leaving injured people without access to justice. This barrier to justice is growing, as FRCs have not kept up with inflation. For example, in some lower value claims run through the ‘Claims Portal’, FRCs have not increased at all since 2013, despite a 42% rise in inflation. In essence, the costs of pursuing a claim have significantly increased, but the costs which victims can recover have not. This means more victims cannot recover what is needed to pursue their claim. This barrier to justice is growing Victims cannot recover enough legal fees In cases affected by FRCs, the legal costs of pursuing a claim increasingly exceed what can be recovered from the wrongdoer. This is particularly the case for more complex claims, as these are more time-consuming and expensive to run. As a result, lawyers say that they are unable to support an increasing number of victims who approach them for help. What can be recovered is simply not enough to pursue the claim. APIL’s research with personal injury (PI) lawyers highlights that fixed recoverable costs (FRCs), which cap the amount of legal costs that victims can recover from the wrongdoer, is a growing barrier to justice. PAGE 18

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