As of 1 July, the voluntary pre-action protocol fees for Scottish compensation claims increased by 12%. The pre- 1 July feeing arrangement had been in place for 2 years. The new arrangement was reached following an agreement between the Law Society of Scotland and the Forum of Scottish Claims Managers and is to continue until 31 December 2010. It increases the instruction fee for settlements up to £1,500 from £320 to £358, and in cases where the settlement exceeds £1,500 the instruction fee increases from £900 to £1,006.
This development will inevitably increase compensator’s costs. However, if the economy goes into deflation it is anticipated that payments made in respect of heads of claim such as solatium (i.e. pain and suffering) and loss of employability will be reduced accordingly.