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25 February 2011
Issue: 7454 / Categories: Legal News
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Banks to stump up?

Law Society sets out alternative to legal aid cuts

Banks would be forced to cover the cost of their own fraud cases under the Law Society’s alternative plans for legal aid.

Making the fi nancial sector pay its way could save the public purse £74m according to Law Society estimates. Introducing a single fee for crown court work could save £30m, while limiting the maximum any individual can earn through legal aid to the equivalent of the NHS earnings of a top surgeon could save £16m.

The Law Society claims the potential savings it has identifi ed would match the government’s £350m raid on legal aid, thus removing the need for cuts. It has launched a campaign at www. soundoff forjustice.org.

Other potential savings include funding legal costs from seized assets of defendants (£9m), greater use of wasted costs orders (£9m) and reforming prosecuting procedures around VHCCs (Very High Cost Cases) (£14m).
Law Society president Linda Lee said the government’s current proposals “will increase overall costs to the state as downstream costs arise when legal problems aff ecting ordinary people are unresolved”.

Lee said savings could be made across the justice system without harming legal aid or access to justice. Carol Storer, director of the Legal Aid Practitioner’s Group (LAPG) has called on the government to re-think its plans.

In an open letter to the Lord Chancellor, Ken Clarke, published in last week’s NLJ, Storer said: “Th e proposals, which are estimated to have a cumulative impact of £395m– £440m on a budget of £2.1bn, will have a disproportionate impact on vulnerable women, children, black and minority ethnic clients, and those living with disability and mental health problems. “By far the largest impact will be on family cases…the fear is that family members, especially children, will be put at risk.”

The Bar Council, in its response to the government’s green paper on legal aid, warned the cuts could cost more than they saved because of the extra burden on the court system and other government departments such as the Department of Health.

The Law Society has rejected Lord Justice Jackson’s proposals on changes to civil costs because they “will prevent ordinary people seeking redress”.

Issue: 7454 / Categories: Legal News
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MOVERS & SHAKERS

Laytons ETL—Maximilian Kraitt

Laytons ETL—Maximilian Kraitt

Commercial firm strengthens real estate disputes team with associate hire

Switalskis—three appointments

Switalskis—three appointments

Firm appoints three directors to board

Browne Jacobson—seven promotions

Browne Jacobson—seven promotions

Six promoted to partner and one to legal director across UK and Ireland offices

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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