Keywords: court fee, increase, money claims
In January 2015, the Government announced a dramatic increase in
the fee for issuing Court proceedings in money claims worth
£10,000 or more. Following Parliamentary approval on 4 March,
the new fees will come into force on 9 March. Until now, the
highest issue fee for a money claim has been £1,920. For
claims issued on or after 9 March 2015, the maximum fee will be
£10,000.
The increase in issue fee follows a two-part government
consultation in December 2013. Part one proposed fee increases
aimed at recovering close to the full cost of the civil court
system through fees, transferring more of the cost to the user and
reducing the cost to the general taxpayer. These were implemented
last year. Part two of the consultation proposed setting some fees
above cost, charging 'enhanced' fees to
reduce the net cost of the courts to the taxpayer and to require
those who use the courts to make a greater contribution to running
costs.
At present, the issue fee is fixed according to the value of the
claim, with a maximum issue fee of £1,920 for claims valued
at £300,000 or more. From 9 March 2015:
- issue fees for claims worth less than £10,000 will remain at their current levels;
- issue fees for all claims valued at £10,000 or more will be 5% of the value of the claim;
- the maximum issue fee will be £10,000 (5% of £200,000); and
- a claim for an unspecified amount will incur the maximum fee.
For all claims valued at £200,000 or more, the issue fee
will be £10,000. This fee structure will apply to all money
claims, as well as counterclaims with a value of £10,000 or
more.
The January announcement regarding the issue fee increase caused
wide-spread concern. Many, including the senior judiciary, consider
that the increase may limit access to justice and damage
London's attractiveness as a centre for international dispute
resolution. The Law Society, supported by the Bar Council, the
Commercial Bar Association, the Chancery Bar Association and
others, has threatened to seek judicial review of the
increases.
It remains to be seen what the impact of the increases will be.
The Government says that it will monitor the case-load and keep the
position under review. If there is no obvious impact, in terms of a
reduction in numbers of claims issued, it may be that this trend of
requiring court users to pay higher fees will continue with the
introduction of a daily hearing fee in commercial cases. This was
proposed in the December 2013 consultation but not implemented this
time.
Originally published on 5 March 2015
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2015. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.