The new fee policy, proposed to become legislation in April 2015, will mean that a sole trader or small business intending to sue for £200,000 would have to pay an upfront court fee of £10,000.
The Law Society is bringing judicial review proceedings against the Government over its proposed rise in fees - of up to 600% - for claimants using the civil, family and commercial courts, which it claims are “tantamount to selling justice”.
In its application for judicial review, the Law Society claims the Government is “proceeding without evidence to justify the increases” and “failed to allow representations on enhanced fees in combination with amendments to the remissions scheme”.
The Law Society has also criticised the proposed fee increases as flouting “the principles of the Magna Carta” and because they "provide an incentive for large companies to deny liability, knowing that the injured parties would not be in a position to fund expensive court fees”.
Lawyers are poised to take legal action against Chris Grayling over plans to raise court fees by up to 600 per cent, saying they amount to a breach of Magna Carta. At a three-day legal summit in London celebrating the 800th anniversary of the sealing of Magna Carta, legal bodies including the Law Society and the Bar have issued a pre-legal action letter, putting the lord chancellor on notice of a judicial review.