Page 20 - PIC-Magazine-Issue-26

Medical Agency Charges
The Continuing Conundrum
The Continuing Conundrum
Ben Petrecz - Costs Lawyer at PIC
or over two decades, paying and
receiving parties have been at war
concerning inter partes recovery of
medical agency charges in personal
injury & clinical negligence actions.
Although the intensity of the battle
has fl uctuated, its presence has always
loomed over those advising their professional clients
on what might or might not be allowed on a summary
or detailed assessment. With the volume of reported
decisions noticeably increasing over recent years,
we now appear to be reaching a crescendo where
a defi nitive conclusion is required to restore some
certainty to the assessment process and allow judicial
resource to focus elsewhere. But how have we got
here; and is the end genuinely in sight?
A long time ago, in a galaxy far far away, a specialist
costs judge declared1:
In routine personal injury cases, where a medical
report is required, it has become a common practice
to instruct a medical agency to arrange a medical
examination of the Claimant, to undertake the
collation and obtaining of relevant medical reports,
to arrange the appointment with the medical expert
and the Claimant, deal with any cancellations or
rearrangements, and to deliver the resultant
medical report to the solicitors.
Because of the specialisation,
experience and expertise of the
medical agency they are able
to do this administrative
work, at least as
effi ciently, expeditiously
and economically as most
fi rms of solicitors using their
own fee earners.
… I am satisfi ed that there is no principle which
precludes the fees of a medical agency being
recoverable between the parties, provided it is
demonstrated that their charges do not exceed the
reasonable and proportionate costs of the work if it
had been done by the solicitors.
…It does therefore seem to me important that, whilst
there is much to commend the use of medical agencies,
it is important that their invoices (or 'fee notes') should
distinguish between the medical fee and their own
charges, the latter being suffi ciently particularised to
enable the cost offi cer to be satisfi ed they do not exceed
the reasonable and proportionate cost of the Solicitors
doing the work it had been done by the solicitors.
Th ere may however be, within MDL’s fi xed charge, an
element in the nature of an administration fee which is
not recoverable.
…It does therefore seem to me important that, whilst
there is much to commend the use of medical agencies,
it is important that their invoices (or 'fee notes') should
distinguish between the medical fee and their own
charges, the latter being suffi ciently particularised to
enable the cost offi cer to be satisfi ed they do not exceed
the reasonable and proportionate cost of the Solicitors
doing the work.
After two decades of
confl icting judgments and
mounting uncertainty, the courts
are approaching a point where
decisive guidance can no longer
be deferred: without a clear,
authoritative ruling on medical
agency charges, the costs war will
continue to drain time, money,
and confi dence from the
assessment process.
INDUSTRY EXPERTS
20 Partners In Costs