The Law Society of England and Wales has backed reforms of solicitors’ costs rules, but warns the proposals must be underpinned by “robust evidence”.
The warning comes amid concerns that plans to expand the Legal Ombudsman’s (LeO) role risks overloading a system already under significant pressure.
The Law Society has spoken to members to inform its response to a Civil Justice Council (CJC) consultation on reforming solicitors’ costs in the Solicitors Act 1974, which closes on 16th July.
The proposals are not supported by sufficient evidence about how the current costs regime operates in practice, the Law Society warns, with plans to divert more costs disputes to LeO a cause for concern, as “the Ombudsman currently lacks the capacity, resources and specialist expertise for a significantly expanded role.”
Any reforms must be fair to both clients and solicitors and keep pace with developments in legal practice, including AI, technology, litigation funding and new service delivery models, the Law Society added.
Vice president Brett Dixon explained: “We support reforming solicitors’ costs in the Solicitors Act 1974 and hope that the changes will deliver a clearer, simpler and more modern system that is fair to both solicitors and clients. This is a pivotal opportunity to reform a system that is no longer fit for purpose.
“However, the proposed reforms must be based on robust evidence. There is currently inadequate data about how the current costs regime operates in practice, making it difficult to assess whether the proposals are necessary, proportionate or workable.
“LeO, meanwhile, has been battling a backlog of cases for years and has consistently failed to deliver its core statutory function, a speedy resolution service.
“These proposals will add to LeO’s workload and may not be feasible. The Ombudsman must continue to focus on meeting consumer demand and improving its performance before taking on additional responsibilities.”
He concluded: “The CJC’s proposals are well-intentioned, but any reforms must keep pace with the rapid changes taking place across the legal profession.
“Solicitors and clients are using technology and AI, while the delivery of legal services is expanding via unbundled legal services and alternative forms of dispute resolution. Any reforms must keep up with this rapid pace of change.
“We look forward to continuing to work with the CJC on behalf of our members to ensure any reforms are workable in practice.”
The consultation explores potential reforms of Part III of the Solicitors Act 1974, which deals with solicitors’ costs. The Law Society is part of the working group alongside the Solicitors Regulation Authority and the Legal Services Board, which drafted the paper for stakeholder consideration.
