Industry Update March 2025
In this latest roundup of industry news, Ian Cohen, Clinical Negligence expert and Commercial Development Consultant for Kain Knight discusses some of the key changes in the clinical negligence sector, including the difference that having specialist legal advice can make to a claim, and the continued drive towards ADR.
Lower Damages Clinical Negligence Fixed Recoverable Costs.
Both the December 2024 and February 2025 CPRC minutes have been published, and both are silent as to the proposed sub £25k reforms. We can safely conclude therefore that any reforms will not be introduced in 2025 and there is significant doubt if they will ever see the light of day.
APIL UK PI Market Briefing
In January APIL released its PI Market Briefing apilpersonalinjurymarketbriefing.pdf
Based on CRU data for the period 1st April 2023 to 31st March 2024, Clinical Negligence were up 9.7% compared to the previous year, a total of 15,839 cases and just 2% below the pre covid levels.
Based on NHSR data, average costs per case had risen to £55,000 (assumed to include vat and disbursements) and based on Claimant costs paid, the top 20 had for the first time over 50% market share, a total of 51.4%.
Specialist Legal Advice
The Law Society Gazette recently reported about the importance of Claimants having specialist legal advice Personal injury firm secures unprecedented £27.4m settlement after rejecting £1.5m and £10m offers | Law Gazette Concerns had been raised by the Claimants case manager resulting in the Claimant switching to a specialist firm. The new firm rejected offers of £1.5m and £10m before eventually settling for £27.4m!! The importance of having specialist advice extends to the whole legal team, from the Case Manager through to a specialist Cost Lawyer.
Expansion of ADR in Clinical Negligence?
In Churchill v Merthyr Tydfil, the Court of Appeal held that the courts have the power to order parties to engage in mediation or another form of ADR, as well as having the power to stay proceedings to facilitate ADR between the parties.
Following this decision, the CPRC launched a consultation in April 2024 , which closed at the end of May and it is widely expected that we will see new Rules and changes to the Pre-Action Protocols, that will compel parties in Clinical Negligence cases to actively explore, if not participate in, Mediation and other forms of ADR.
Two recent cases have continued to shine a focus in this area.
In DKH Retail and others v City Football Group Ltd, a pre-trial review in a trade mark dispute, the judge rejected objections put forward by the Defendant to an application for compulsory mediation made by the Claimant shortly before trial. A postscript to the 21 November ruling noted that the court was informed this month that the parties had in fact settled. See High Court orders compulsory mediation despite defendant objections | Law Gazette
In Assensus Ltd v Wirsol Energy Ltd (Re Consequential Matters) [2025] EWHC 503 (KB) The Court rejected the Claimant’s argument that the successful Defendant’s refusal to attend mediation should lead to a reduction in the Defendant’s costs. The case serves as a reminder that there is no “automatic” penalty when a party declines mediation. The burden here was on the claimant to show that the defendant acted unreasonably and making a reasonable offer and standing by it was not unreasonable conduct. See COST BITES 221: A FAILURE TO AGREE TO MEDIATE DID NOT LEAD TO A REDUCTION IN A SUCCESSFUL DEFENDANT’S COSTS – Civil Litigation Brief
M&A Activity
With renewed confidence in the Clinical Negligence sector, due in part by the ongoing delay to the sub £25k reforms, it is inevitable that we will see further consolidation in the sector.
This consolidation will be driven by the bigger firms taking an increasing market share but also but the insatiable appetite of Private Equity to invest in the legal market. Research conducted by Acquira Professional Services found that Private equity has invested £1.2b into law firms in the last five years, with £535m last year alone. Private equity invests £1.2bn in the law in just five years – Legal Futures
