Report recommends legal costs reform

A new report has recommended changes to the way solicitors and barristers charge for their services.

A new report has recommended changes to the way solicitors and barristers charge for their services.

Central to the report by the Legal Costs Working Group is a recommendation that clients should only pay for the work that is done.

Launching the report tonight, Minister for Justice Michael McDowell said the reforms would give power back to the consumer.

As part of wide ranging changes to the way solicitors and barristers charge clients, Mr McDowell said the recovery of costs for work agreed to be done but not carried out would end.

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"I intend to empower the consumer of legal services - the client - and give him or her the information they need to make informed choices," he said.

"I intend to transform the way in which legal costs are determined and, where legal costs are disputed, how costs are to be assessed."

The radical reforms of the legal costs system will see the establishment of a regulatory body, a written assessment process and oral appeals process.

The Legal Costs Working Group, chaired by Paul Haran, the former Secretary General of the Department of Enterprise, was set up in 2004 to look at ways of reducing civil legal costs.

Mr McDowell said: "Once the new costs arrangements have been put in place and have bedded into the legal system, the market for civil legal services will become more predictable, consistent and transparent to consumers".

"This transparency will also make it easier for consumers to recognise competitive prices for the services they require and facilitate access to the State's system of justice."

Mr McDowell said: "The recommendations are wide-ranging and represent significant change in the manner in which legal costs are determined and assessed.

"The recommendations span the operational, policy and legislative areas and it is clear that a great deal of preliminary work will be required before the new systems can be put in place."

The Minister also confirmed the Government have approved plans for a Legal Services Ombudsman to strengthen the mechanisms for dealing with complaints against solicitors and barristers.

The Ombudsman will oversee the handling by the Law Society and Bar Council of three classes of complaint against solicitors and barristers, namely - inadequate services, excessive fees and misconduct.

The Legal Services Ombudsman will effectively take over the Law Society's existing office of Independent Adjudicator.