The proposed legislation to dramatically reduce legal costs that lawyers can recover in motor vehicle personal injury cases will reduce access to justice and reduce the recovery of fair compensation for the injured.

The Motor Accidents Authority (MAA) has provided the NSW Bar Association and NSW Law Society with a draft set of amendments to the Costs Regulations applicable to claims under the Motor Accidents Compensation Act.

The three critical features of the proposed changes are:

• A significant reduction in recoverable party/party costs under the regulations
• The extension of the Costs Regulations to all claims, including exempt and litigated claims.
• Capping of solicitor/client costs at 50% of the regulated fee.

There are additional allowances for medico-legal reports, some interlocutory disputes and appearance fees for CARS assessments and court hearings.

This represents a radical restructure of the current Costs Regulations.

The NSW Law Society and NSW Bar Association has serious concerns about the proposal, which cuts and restricts recoverable costs. The removal of the capacity of lawyers to act for the injured will reduce access to justice and reduce the recovery of fair compensation for the injured.

The NSW Bar Association is engaged in discussions with the MAA to express its opposition to these proposals. There is to be a further period of formal consultation with the association (as required under the Act) prior to any regulation being gazetted.