Ministry of Justice Reforms Announced

The MOJ today released its response to the consultation on Case Track Limits and the claims process for personal Injury claims, – http://www.justice.gov.uk/docs/case-track-limits-response.pdf

The Government has been under significant pressure to reach its conclusions having commenced a consultation process in April 2007 and having failed to meet a number of self imposed deadlines on the basis that the issues have been complex. Bearing in mind much of this process arose out of the perceived failure of the Woolf reforms to control claim costs it was expected that the MOJ would take the opportunity for wholesale reform.

What then of the response? Damp squib or masterpiece? Except in relation to road traffic personal injury claims valued between £1,000.00 and £10,000.00 much of the status quo has been preserved. The opportunity for wholesale reform has not been taken. In summary the consultation process has resulted in the government concluding:-

1. There will be no change in the small claims track limits for any class of claim;

2. The fast track limit will be increased from £15,000.00 to £25,000.00 for all classes of claim;

3. There will be no changes in the claims process save for road traffic claims and possibly intellectual property claims;

4. The ATE position to remain the same, i.e. premiums remain recoverable on policies taken out before a decision on liability is or should be made;

5. There will be reform of the RTC claims process for personal injury claims valued between £1,000.00 and £10,000.00. LINK TO MOTOR REFORMS

Therefore, despite very long and detailed consultation the Government has effectively declined to reform Employer Liability and Public Liability claims save for an increase in the Fast Track limit to £25,000.00. No effective date has yet been announced.

Simon Evans