Where there’s pleasure, there’s pain

Hot on the heels of the Claimant friendly judgement of Simcoe v Jacuzzi, comes the murmurs that the Defendants are to appeal.

Also in the news, Prime Minister David Cameron has “committed the government” to reducing the RTA portal costs of £1200 payable to Claimant Solicitors along with suggesting that a minimum impact speed will be necessary to establish a claim for whiplash.

Lets think about this. The aim is to reduce costs. However, this will surely mean more Claimant Solicitors seeking to escape the portal thus satellite litigation about premature issue etc. More costs incurred.  Secondly, more satellite litigation over the speed of impact – he says he was doing 30mph, she said it was more like 10 mph. More increased costs with the crash investigators being called out.

So two suggestions by David Cameron to reduce costs will in all probability increase costs. Objective failed.

When will people actually realise when they are actually better off, or have achieved the best possible result, and just need to get on with things.  It reminds me of when Claims Direct first came to power with an insurance premium of circa £1215 with no success fee. The insurance industry cried foul and brought down the house of Claims Direct. This was replaced with the house of staged premiums and success fees for PI work. If the Master of the Rolls thinks £75k for costs is bad as was the case in Simcoe, just seen a case where the premium alone was £75k for damages of £20k and costs of circa £20k. Oh how the insurers wish they hadn’t killed Claims Direct Mk I (ie not the RJW incarnation).

 

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