The NHSLA have recently released their annual report and accounts for 2013/14. There are several interesting findings from the report which need to be considered in depth. Firstly, there has been a 2% rise on Clinical Negligence expenditure on Defendants legal costs in 2013/14 whilst the expenditure on Claimant’s legal costs has remained the same. However the largest proportion of the Clinical Negligence expenditure has remained on damages. This now accounts for 70% of expenditure down 2% from 2012/13.
The number of new Clinical Negligence claims increased by 17.9% from 2012/13 to 2013/14.
In 2012/13 £259,524,426 worth of costs were claimed. Of this the NHSLA settled £184,514,957, saving £74,747,620 on the costs claimed. The NHSLA report states that where bills were assessed a court a 32% reduction was made to the costs claimed, compared to a 28% reduction where the bills were settled prior to court.
Proportionality has been a very important factor in cases especially in the past year and a half. It is therefore, somewhat surprising that in the year 2013/14 costs in claims of between £1,000 and £10,000 are typically 273% of damages paid. This is particularly surprising as these are the claims which can often be dealt with the swiftest so these should have been taken on in recent years when the principle of proportionality is at the forefront of everyone’s minds. It is clear that this figure will need to be considered further in future, with Claimant solicitors requiring careful consideration on the proportionality of a case.
In relation to higher value cases there are fewer concerns about proportionality as in claims of £50,000 to £100,000 costs were typically 74% of damages paid. Whilst in those large claims worth over £1m, costs were typically only 4% of damages paid.
However, it must be remembered that this is not an independent review, and the NHSLA will always be very positive about savings made on legal costs. Therefore whilst this is an indicative report it must be read with the wider picture in mind.
Graeme Swain, Consultant Lawyer, at Swain & Co Solicitors LLP says, “I am concerned about the proportionality issues arising out of some of the low value claims, and the fact that Claimants solicitors have to spend so much time and energy settling these claims. Going forwards I hope there will be more transparency on the part of the NHSLA so that cases can be settled quickly and proportionately.”