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Published by The Scottish Parliamentary Corporate Body
Stage 1 Report on the Civil Litigation (Expenses and Group Proceedings) (Scotland) Bill
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Published: Thursday 21 Dec 2017 (JS052017R24)
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Overview
Report
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Overview
Report
Executive Summary
Glossary
Membership changes
Introduction
Background to the Bill
Scottish Civil Courts Review
Review of Expenses and Funding of Civil Litigation in Scotland
Overview of the Bill
Related policy developments
Justice Committee consideration
Consideration by other Committees
Access to justice
Is there an access to justice problem?
Will the Bill improve access to justice?
Protection from court fees
Conclusions on access to justice
Success fee agreements
Damages-based agreements
Existing law and practice
Enforceability of damages-based agreements by solicitors
Conflicts of interest
Power to cap success fees
Evidence on the power to cap success fees
Possibility of multiple success fees
Success fee agreements in personal injury claims
Damages for future loss
Evidence on damages for future loss
Arguments in support of ring-fencing damages for future loss
Arguments against ring-fencing damages for future loss
Practical issues with the Bill's approach to future loss
Periodical payments
Involvement of an actuary
Conclusions on damages for future loss
Other provisions on success fee agreements
Expenses in the event of success
Exclusion for family proceedings
Power to make further provision
Expenses in civil litigation
Overview of Part 2 of the Bill and the evidence received
Qualified one way costs shifting (QOCS)
The provisions in the Bill
The justification for introducing QOCS
Evidence on the introduction of QOCS
Arguments in support of introducing QOCS
Arguments against introducing QOCS
Response to the concerns about introducing QOCS
Conclusions on the introduction of QOCS
Uninsured defenders
Tests to lose QOCS protection
The test in section 8(4)(a)
The test in section 8(4)(b)
Tenders
Summary dismissal
Scottish Government response to the evidence on the tests to lose QOCS protection
Conclusions on the tests to lose QOCS protection
Third party funding
Who would be caught by the definition of a funder?
Regulation of claims management companies
Developments during the course of the Committee's scrutiny of the Bill
Financial Guidance and Claims Bill
The timing of regulation
Referral fees and cold calling
Conclusions on the regulation of claims management companies
Auditors of court
Scottish Civil Courts Review
Proposals in the Bill for auditors of court
Evidence on auditors of court
Group proceedings
What are group proceedings?
Background to the Bill's provisions on group proceedings
The Bill's provisions on group proceedings
Scottish Government's policy justification for the approach taken
Evidence on group proceedings
Views on the overall approach taken in the Bill
Views on opt-in versus opt-out proceedings
Funding of group proceedings
Conclusions on group proceedings
Financial Memorandum
Evidence on the Financial Memorandum
Scottish Government response
General principles of the Bill
Annex A - Extracts from the minutes
Annex B - Written evidence
Sources
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Policy Memorandum, paragraph 7. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Scottish Civil Courts Review, recommendation 189. (n.d.) Retrieved from
https://www.scotcourts.gov.uk/docs/default-source/civil-courts-reform/report-of-the-scottish-civil-courts-review-vol-2-chapt-10---15.pdf?sfvrsn=4
Policy Memorandum, paragraph 20. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Policy Memorandum, paragraph 11. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Association of Personal Injury Lawyers. (2017, August). Written submission, paragraph. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-APIL.pdf
UNISON Scotland. (2017, August). Written submission, paragraph 6. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-Unison.pdf
Taylor Review, Foreword page iii. (n.d.) Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Forum of Insurance Lawyers. (2017, August). Written submission, paragraphs 15-17. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FOIL.pdf
Association of British Insurers. (2017, August). Written submission, paragraph 7. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-ABI.pdf
DWF LLP. (2017, August). Written submission, paragraph 4. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-DWF.pdf
Justice Committee. (2017, September 19). Official Report 19 September 2017, col.11. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11092&mode=pdf
Justice Committee. (2017, September 19). Official Report 19 September 2017, col.17. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11092&mode=pdf
Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 4. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11165&mode=pdf
Justice Committee. (2017, October 31). Official Report 31 October 2017, col.18. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11165&mode=pdf
Justice Committee. (2017, November 21). Official Report 21 November 2017, cols. 38-39. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11218&mode=pdf
Justice Committee. (2017, November 14). Official Report 14 November 2017, col. 24. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11199&mode=pdf
Policy Memorandum, paragraph 4. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 35. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11218&mode=pdf
Law Society of Scotland. (2017, August 18). Written submission, paragraph 4. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-LSS.pdf
Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 5. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FOIL.pdf
Scottish Environment LINK. (2017, August). Written submission, paragraph 3. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-SELink.pdf
Thompsons Solicitors Scotland. (2017, August). Written submission, paragraph 31. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-Thompsons.pdf
STUC. (2017, August). Written submission, paragraph 19. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-STUC.pdf
Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 39. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11218&mode=pdf
Policy Memorandum, paragraph 35. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Justice Committee. (2017, September 19). Official Report 19 September 2017, cols.1-3. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11092&mode=pdf
Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 2. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11092&mode=pdf
Law Society of Scotland. (2017, August). Written submission, paragraph 8. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-LSS.pdf
Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 8. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11113&mode=pdf
Justice Committee. (2017, September 26). Official report 26 September 2017, col.30. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11113&mode=pdf
Association of British Insurers. (2017, August). Written submission, paragraph 12. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-ABI.pdf
Policy Memorandum, paragraph 28. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Sheriffs' Association. (2017, September). Written submission, paragraph 2. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-SheriffsAssociation.pdf
Taylor Review, Chapter 9 paragraph 70, and recommendation 41. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Taylor Review, recommendation 69. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Justice Committee. (2017, November 14). Official report 14 November 2017, cols. 13, 16. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11199&mode=pdf
Taylor Review, recommendations 42 and 57. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Taylor Review, recommendations 43, 44, 58 and 59. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Policy Memorandum, paragraph 34. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Which?. (2017, November). Written submission, paragraph 34. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-Which.pdf
Law Society of Scotland. (2017, August). Written submission, paragraph 17. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-LSS.pdf
Policy Memorandum, paragraph 21. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Justice Committee. (2017, September 5). Official Report, 5 September 2017, col. 12. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11057&mode=pdf
Justice Committee. (2017, November 21). Official Report, 21 November 2017, cols. 35, 37. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11218&mode=pdf
Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 7. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11165&mode=pdf
Association of British Insurers. (2017, August). Written submission, paragraph 19. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-ABI.pdf
DAC Beachcroft Scotland LLP. (2017, August). Written submission, paragraph 21. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-DACBeachcroft.pdf
Andrew Smith QC. (2017, September). Written submission, paragraph 51. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-SmithAndrew.pdf
Justice Committee. (2017, September 19). Official Report 19 September 2017, cols. 4, 6. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11092&mode=pdf
Business and Regulatory Impact Assessment for the Bill, page 9. (2017, June). Retrieved from
http://www.gov.scot/Resource/0052/00520596.pdf
Taylor Review, recommendations 62 - 66. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Taylor Review, Chapter 9 paragraph 110. (2013, September). Retrieved from
http://www.gov.scot/Resource/0043/00438205.pdf
Policy Memorandum, paragraphs 31, 33. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 22. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FOIL.pdf
Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 21. Retrieved from
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Justice Committee. (2017, September 26). Official Report 26 September 2017, cols. 32, 34. Retrieved from
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Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 34. Retrieved from
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Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 7. Retrieved from
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Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 8. Retrieved from
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Justice Committe. (2017, September 19). Official Report 19 September 2017, col. 10. Retrieved from
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Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 13. Retrieved from
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Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 8. Retrieved from
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Faculty of Advocates. (2017, August). Written submission, paragraph 10. Retrieved from
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Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 10. Retrieved from
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Medical and Dental Defence Union of Scotland. (2017, August). Written submission, paragraph 9. Retrieved from
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Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 19. Retrieved from
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Faculty of Advocates. (2017, August). Written submission, paragraphs 7-8. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FacultyofAdvocates.pdf
Law Society of Scotland. (2017, August). Written submission, paragraph 19. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-LSS.pdf
Taylor Review, recommendation 70 and Chapter 9 paragraph 65. (2013, September). Retrieved from
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Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 51. Retrieved from
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Equality and Human Rights Commission. (2017, August). Written submission, paragraphs 11, 13. Retrieved from
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Justice Committee. (2017, November 14). Official Report 14 November 2017, col. 32. Retrieved from
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Sheriffs' Association. (2017, September). Written submission, paragraph 13. Retrieved from
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Scottish Courts and Tribunals Service. (2017, August). Written submission, paragraph 7. Retrieved from
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Scottish Courts and Tribunals Service. (2017, August). Written submission, paragraphs 7-8. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-SCTS.pdf
Law Society of Scotland. (2017, August). Written submission, paragraph 34. Retrieved from
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Taylor Review, Foreword iii-iv. (2013, September). Retrieved from
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Policy Memorandum, paragraph 38. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Policy Memorandum, paragraphs 43-44. (2017, June). Retrieved from
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Association of Personal Injury Lawyers. (2017, October). Supplementary written submission, paragraph 22. Retrieved from
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Motor Accident Solicitors Society. (2017, August). Written submission, paragraph 15. Retrieved from
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UNISON Scotland. (2017, August). Written submission, paragraph 5. Retrieved from
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Association of British Insurers. (2017, August). Written submission, paragraphs 28-30. Retrieved from
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Medical and Dental Defence Union of Scotland. (2017, August). Written submission, paragraph 16. Retrieved from
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Association of Personal Injury Lawyers. (2017, October). Supplementary written submission, paragraph 17. Retrieved from
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Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 21. Retrieved from
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Faculty of Advocates. (2017, August). Written submission, paragraph 14. Retrieved from
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Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 40. Retrieved from
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Glasgow Bar Association. (2017, August). Written submission, paragraph 19. Retrieved from
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Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 18. Retrieved from
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Association of British Travel Agents. (2017, November). Supplementary written submission, paragraph 5. Retrieved from
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Justice Committee. (2017, September 19). Official Report 19 September 2017, col. 20. Retrieved from
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Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 10. Retrieved from
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Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 42. Retrieved from
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Association of Personal Injury Lawyers. (2017, August). Written submission, paragraph 8. Retrieved from
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Law Society of Scotland. (2017, August). Written submission, paragraph 28. Retrieved from
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Fire Brigades' Union. (2017, August). Written submission, paragraph 11. Retrieved from
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Faculty of Advocates. (2017, August). Written submission, paragraph 13. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FacultyofAdvocates.pdf
Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 24. Retrieved from
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Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 42. Retrieved from
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Association of British Insurers. (2017, October). Supplementary written submission, paragraph 10. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-AssociationofBritishInsurerssupp.pdf
Justice Committee. (2017, October 31). Official Report 31 October 2017, cols. 10-11. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11165&mode=pdf
Faculty of Advocates. (2017, August). Written submission, paragraph 12. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FacultyofAdvocates.pdf
Association of British Insurers. (2017, August). Written submission, paragraph 26. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-ABI.pdf
Association of British Insurers. (2017, August). Written submission, paragraph 31. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-ABI.pdf
Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 43. Retrieved from
http://www.scottish.parliament.uk/S5_JusticeCommittee/Inquiries/CL-FOIL.pdf
Justice Committee. (2017, September 5). Official Report 5 September 2017, col. 16. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11057&mode=pdf
Justice Committee. (2017, September 26). Official Report 26 September 2017, col. 20. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11113&mode=pdf
Justice Committee. (2017, October 31). Official Report 31 October 2017, col. 12. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11165&mode=pdf
Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 43. Retrieved from
http://www.parliament.scot/parliamentarybusiness/report.aspx?r=11218&mode=pdf
Policy Memorandum, paragraph 51.. (2017, June). Retrieved from
http://www.scottish.parliament.uk/Civil%20Litigation%20(Expenses%20and%20Group%20Proceedings)%20(Scotland)%20Bill/SPBill14PMS052017.pdf
Association of Personal Injury Lawyers. (2017, August). Written submission, paragraph 19. Retrieved from
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Association of Personal Injury Lawyers. (2017, August). Written submission, paragraph 24. Retrieved from
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Law Society of Scotland. (2017, August). Written submission, paragraph 33. Retrieved from
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Which?. (2017, November). Written submission, paragraphs 38-39. Retrieved from
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Forum of Insurance Lawyers. (2017, August). Written submission, paragraph 37. Retrieved from
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Forum of Insurance Lawyers. (2017, October). Supplementary written submission, paragraph 4. Retrieved from
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Association of British Travel Agents. (2017, November). Supplementary written submission, paragraph 10. Retrieved from
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Justice Committee. (2017, November 21). Official Report 21 November 2017, col. 34. Retrieved from
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Policy Memorandum, paragraph 58. (2017, July). Retrieved from
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Policy Memorandum, paragraph 75. (2017, July). Retrieved from
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Policy Memorandum, paragraph 71. (2017, June). Retrieved from
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Judges of the Court of Session. (2017, August). Written submission, paragraphs 3-4. Retrieved from
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Scottish Courts and Tribunals Service. (2017, August). Written submission, paragraph 9. Retrieved from
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Scottish Courts and Tribunals Service. (2017, August). Written submission, paragraphs 10-11, 13. Retrieved from
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Sheriffs' Association. (2017, September). Written submission, paragraphs 15-16. Retrieved from
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Andrew Smith QC. (2017, September). Written submission, paragraph 21. Retrieved from
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Andrew Smith QC. (2017, September). Written submission, paragraphs 28, 80-81. Retrieved from
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Society of Sheriff Court Auditors. (2017, August). Written submission, paragraph 3. Retrieved from
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Policy Memorandum, paragraph 83. (2017, June). Retrieved from
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Policy Memorandum, paragraph 94. (2017, June). Retrieved from
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Delegated Powers Memorandum, paragraph 40. (2017, June). Retrieved from
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Equality and Human Rights Commission. (2017, August). Written submission, paragraphs 17-18. Retrieved from
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Scottish Environment LINK. (2017, August). Written submission, paragraph 38. Retrieved from
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Judges of the Court of Session. (2017, August). Written submission, paragraphs 7-12. Retrieved from
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Which?. (2017, November). Written submission, paragraphs 21-22. Retrieved from
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