Firms “put off” by changes required to embrace J-Codes

Many law firms have so far decided against embracing the J-Codes revolution, a leading Costs Lawyer has reported.

Teresa Aitken, chair of costs firm Partners in Costs (PIC), said that in advising clients on the best approach for them, “in some instances, further to a review of current ways of working and existing IT infrastructure, we have concluded that a move towards adopting the J-Codes is the right decision”.

But she continued: “However, with a sizeable financial outlay needed for specialist software, as well as significant training on how to correctly assign each of the 1,000-plus codes, the vast majority of our clients have chosen not to embrace the change.” 

Urging solicitors to put plans in place to tackle J-Codes and the new format bill of costs, Ms Aitken said the new regime could prove a “costly experiment” if firms act before considering their preferred approach in the longer term.

She said: “On paper, the introduction of a set of codes which are allocated to the various costs incurred throughout the process of a case sounds ideal. Action taken, code assigned. The reality, though, is somewhat different.

“There are more than 1,000 different permutations of the J-Codes and, while many of the firms that have consulted with us over recent months start off thinking that the allocation of said codes can be delegated to a non-fee-earner in the office, with further explanation it becomes clear that it is only the solicitor managing the case in hand that would really be able to do so with any sort of accuracy. 

“In addition to the codes, a description is required of the task which will be different from simply reiterating that which is contained within the attendance note itself.

“It’s time consuming and it will add a considerable number of non-billable hours to a lawyer’s time sheet. Not to mention that the software recommended to engage with the new J-Codes will be costly, as well as the risk of bills being submitted for approval by the courts being reduced significantly if errors are identified.”

Echoing the comments last week of Joe Rose of A&M Bacon, which is part of the PIC group, she said: “According to the leading legal costs auditors in the USA, the whole premise has fallen flat there, with many firms reverting to more traditional costs calculations methods having been left considerably out of pocket as a result.”

PIC has recently established a regional presence in the South West and the North East, and doubled its London team

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Costs News
Published date
19 Aug 2016

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