header-logo header-logo

29 July 2010
Issue: 7428 / Categories: Legal News
printer mail-detail

Jackson-style CFAs plan

Ministry announcement expected in the Autumn

Extensive plans to reform conditional fee agreements (CFAs) will be announced by the Ministry of Justice in the autumn with a view to making “significant cost savings”.

Announcing the consultation in Parliament this week, justice minister Jonathan Djanogly said the consultation would look at implementing Lord Justice Jackson’s review of civil litigation funding, and would focus on CFAs. He said the government was “taking these proposals forward as a matter of priority”.

“CFAs have played a role in giving access to justice to a range of people,” Djanogly said.

“However, high costs under the existing arrangements have now become a serious concern, particularly in clinical negligence cases against the NHS Litigation Authority and in defamation proceedings.”

The Jackson Review recommended introducing contingency fees, also known as damages-based agreements, for litigation. They are often used in employment tribunals but are not permitted in litigation before the courts.
Jackson proposed abolishing the recoverability of success fees and after-the-event insurance premiums for CFAs—a move that would require primary legislation. This would oblige successful claimants to pay their own lawyer’s success fee.

David Greene, partner at Edwin Coe LLP and NLJ consultant editor, says: “The statement from the minister suggests that the aim of the government is primarily to cut the cost of litigation to the NHS and local authorities.”

Greene believes that impact assessment to measure the effect of changes should accompany the consultation and that the “headline grabbing” concept of cutting litigation costs may hold sway with the government.

“Lord Justice Jackson’s report published in January this year was largely aimed at the personal injury market,” he says. “It received mixed reviews; unsurprisingly with APIL [the Association of Personal Injury Lawyers] and claimants lawyers suggesting it will cut access to justice and FOIL [the Forum of Insurance Lawyers] and insurers suggesting it will improve it for defendants and cut their costs.

“At the same time Lord Young’s Claims Standards Council has launched a review of personal injury claims, with public events to be held from October.”
Greene adds that August could offer some respite because, for both sides of the PI market it is likely to be “all hands on deck” for the Autumn. (For more on personal injury litigation & costs see p 1061.)

Issue: 7428 / Categories: Legal News
printer mail-details

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
back-to-top-scroll