Page 17 - PIC e-newsletter Spring Issue 8

The practitioners I
have spoken with at sessions recognise that the new bill represents a cultural shift with regards to not only time recording, but how costs are dealt with generally. There is a recognition that costs will be at the forefront of how cases are conducted, and that many challenges lie ahead.
Seamus Kelly, Team Leader & Advocate.
2 What are ‘J-Codes’? J-Codes are based upon ‘UTMBS Codes’ which have been in use
in America for over 20 years but
are largely abandoned now. The original pilot scheme utilised an extensive set of J-Codes which had 1,479 different combinations. Rather thankfully, this has been given some
After a recent training session on J Codes one of the team members said they had been
trialling the use of J-Codes now for a number of months. They felt they were heading in the wrong direction and thought the whole process was over
complicated and scary. Following the training, they felt confident that they wouldn’t be spending
hours correcting their time recording prior to instructing for preparing a budget/bill – in the
long run saving valuable billable time!
Adrian Hawley,
Head of Court of Protection
3 Do the changes
apply to cases commenced
before the 6th April 2018?
The new format Bill of Costs will apply to all work done on Part 7 Multi-Track claims from the 6th April 2018 regardless of when they were commenced.
The revised Practice Direction permits two Bills of Costs to be served.
This would be one in the traditional format detailing all costs included up
and until 5 April 2018 and an electronic Bill of Costs for all time spent including
much needed slimming down and we now have what are commonly referred to as ‘J-Code Lite’. Practitioners will be expected from the 6th April 2018 to record time by Phase, Task and Activity.
‘Phases’ broadly follow what is already in place for Costs Budgets with a handful of new additions.
‘Tasks’ require practitioners to define the kind of work undertaken and is where the largest number of codes arise. This covers everything from Legal Investigation to Mediation to any Application
(with codes for different types).
‘Activities’ are more straightforward and are made up of 10 further codes and this is where the practitioner defines whether the work type was an attendance, communication, travel or preparation/review time.
This becomes more complicated by the fact that there is an expectation that within the Court’s own model Precedent S each item is not only broken down by the codes but is also apportioned where necessary.
In addition, for any disbursements incurred there are also expense codes which should be used.
and after the 6th April 2018.
If your case settles shortly after the 6th April 2018 then theoretically an agreement could be reached with the other side to avoid the expenses of a new format Bill of Costs.
PD47 also provides a potential escape as cases where the Court orders otherwise are exempt from the new format Bill of Costs. It is food for thought if a case settles shortly after the implementation date as it could be an extra line to incorporate into any Consent Order.
4 What are the exemptions?
Practice Direction 47 5.1(a) set out the exemptions. The new format Bill of Costs will
only apply to Part 7 Multi-Track claims. Any claims subject to fixed or scale costs are exempt. In addition, any cases where the receiving party is unrepresented are exempt and where the Court orders otherwise.
Some practical examples of matters that would be exempt include when making a CPR 45.29J Application to escape fixed costs and in the short-term at least any costs proceedings commenced under the Solicitors Act 1974 which are dealt with by way of Part 8.
If you’re in doubt, seek specialist advice prior to the settlement of your case.
5 What about Schedules of Costs (N260s)?
For the moment these should be prepared in the usual way. Alexander Hutton QC
(who was the Chair of the committee responsible for the new Bill of Costs) has intimated that in the medium to long term, changes will be made to the N260 so that it is compatible with both the new format Bill of Costs and the coding system.
There’s a lot to get to grips with in what is now a short amount of time. PIC can help (even if your costs provider won’t). Our training will help lawyers get familiar with the changes and give practical tips and guidance on best practice.
If you’re interested in booking a training session or simply
want more information, then you can contact us on 0345 872 7678 or e-mail kerry.ridley@pic.legal.
www.pic.legal Spring 2018
INDUSTRY EXPERTS
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