The Civil Justice Council (CJC) has recently called for significant reform of the rules governing solicitors’ costs, highlighting concerns that the current framework is overly complex, outdated, and inefficient.

In particular, comments from Sir Geoffrey Vos and CJC contributors, including Brett Dixon, suggest growing momentum for change. The proposed reforms aim to simplify the system, reduce disputes, and improve access to justice for consumers and businesses alike.

 

Why Reform Is Being Considered

The current regime governing solicitor-client costs is largely derived from Part III of the Solicitors Act 1974, supplemented by case law and procedural rules. While this framework has developed over decades, critics argue that it is now no longer fit for purpose.

The CJC has identified that the distinctions between contentious and non-contentious work remain overly rigid and, in some cases, artificial. These distinctions can create unnecessary complexity in determining how costs should be assessed and challenged.

As noted in recent commentary, the rules around solicitors’ costs are unnecessarily complicated, and it is positive that reform is now being actively considered.

 

A “Complex, Formalistic and Outmoded” System

One of the key criticisms raised is that the current system is complex, formalistic and outmoded. This has led to procedural inefficiencies and increased costs for all parties involved.

In particular, the process for resolving solicitor-client costs disputes is often seen as disproportionate to the sums at stake. The need for detailed assessments, technical arguments, and procedural compliance can make the system difficult to navigate.

This complexity can discourage parties from pursuing legitimate challenges, undermining confidence in the system.

 

Wasteful Use of Court Time and Resources

A central concern identified by the CJC is that the current framework is wasteful of court time and resources.

Disputes over solicitor-client costs frequently involve technical arguments that require judicial input, placing additional strain on already stretched court resources. As highlighted in discussions around reform, the resultant inefficiencies are wasteful and contribute to delays across the wider civil justice system.

Reducing the volume and complexity of such disputes is therefore a key objective of any reform.

 

The Role of Key Institutions

Several key organisations are likely to play a central role in any reform of solicitors’ costs.

• The Law Society, which represents solicitors and has been actively involved in discussions around reform
• The Solicitors Regulation Authority, responsible for regulating professional conduct and ensuring standards are maintained
• The Legal Ombudsman, which handles complaints from clients regarding legal services

These bodies, alongside the CJC, are expected to contribute to shaping a more streamlined and accessible framework.

 

Moving Towards a Statutory Code

One of the potential outcomes of the reform process is the introduction of a clearer statutory code governing solicitors’ costs.

Such a code could replace or simplify aspects of the Solicitors Act, providing greater clarity on:

• How solicitor-client costs are calculated
• When and how costs can be challenged
• The applicable procedures for resolving disputes

A more modern statutory framework could help reduce ambiguity and improve consistency in decision-making.

 

Reducing the Distinction Between Contentious and Non-Contentious Work

Another key area of focus is the distinction between contentious business and non-contentious work.

Currently, different rules apply depending on whether work is classified as contentious. This distinction can create confusion and lead to disputes over classification, rather than focusing on the substantive issues. Reform may seek to simplify or remove these distinctions, creating a more unified approach to costs across different types of legal work.

 

Encouraging Alternative Dispute Resolution

The CJC has also emphasised the importance of alternative dispute resolution (ADR) in resolving costs disputes more efficiently.

By encouraging parties to resolve disputes outside of formal court processes, ADR can help:

• Reduce pressure on court time and resources
• Lower costs for all parties
• Achieve quicker outcomes

Greater use of ADR aligns with broader trends within the civil justice system and is likely to form a key part of any reform package.

 

Impact on Professional Conduct

Reform of solicitors’ costs will also have implications for professional conduct.

Clearer rules and greater transparency may help ensure that solicitors provide better information to clients regarding costs, reducing the risk of disputes arising in the first place.

Regulators such as the Solicitors Regulation Authority are likely to play a role in ensuring that any new framework supports high standards of conduct and client care.

 

What This Means for Clients and Practitioners

For both clients and legal professionals, reform of solicitors’ costs has the potential to bring significant benefits.

For consumers and businesses alike, a simpler system could:

• Improve transparency around legal costs
• Make it easier to challenge bills where appropriate
• Reduce the time and expense involved in resolving disputes

For practitioners, a more streamlined framework could reduce administrative burdens and allow greater focus on substantive legal work.

 

To Conclude

The Civil Justice Council’s call for reform of solicitors’ costs reflects growing recognition that the current system is no longer fit for purpose.

Described as complex, formalistic and outmoded, the existing framework is often wasteful of court time and resources, creating inefficiencies across the civil justice system.

With support from key figures such as Sir Geoffrey Vos and input from organisations including the Law Society and Solicitors Regulation Authority, there is clear momentum towards meaningful reform.

If implemented effectively, these changes could deliver a more modern, transparent, and efficient system for resolving solicitor-client costs disputes, benefiting both practitioners and clients alike.

 

How Greener Costs Can Assist

As the framework governing solicitor-client costs continues to evolve, it is increasingly important for both practitioners and clients to understand their position and manage costs risk effectively.

Greener Costs provides specialist support across all aspects of costs law, including navigating the complexities of Part III of the Solicitors Act 1974 and advising on potential reforms as they develop.

Our services include:

• Advising on solicitor-client costs disputes and assessments
• Providing strategic guidance on costs recovery and exposure
• Assisting with challenges to legal bills
• Supporting compliance with professional conduct obligations
• Offering early-stage advice to prevent costly disputes

With a detailed understanding of the evolving costs landscape, Greener Costs helps ensure that clients and practitioners alike are well-positioned to respond to changes and achieve cost-effective outcomes.

 

FAQ: CJC Reform of Solicitors’ Costs

Why is the Civil Justice Council calling for reform of solicitors’ costs?

The CJC considers the current framework overly complex and inefficient, leading to unnecessary disputes and pressure on court resources.

What is Part III of the Solicitors Act 1974?

It is the statutory framework governing solicitor-client costs, including how such costs are assessed and challenged.

What changes are being proposed?

Potential reforms include simplifying the rules, introducing a statutory code, and reducing distinctions between contentious and non-contentious work.

How could reform affect clients?

Clients may benefit from greater transparency, simpler procedures, and reduced costs when challenging legal fees.

Will alternative dispute resolution play a role?

Yes, ADR is likely to be encouraged to reduce reliance on court proceedings and improve efficiency.