header-logo header-logo

20 January 2010
Issue: 7401 / Categories: Legal News , Fees , Personal injury
printer mail-detail

Straw proposes fee cut

Justice Secretary Jack Straw has proposed a dramatic cut to the success fees lawyers can charge for winning defamation cases, days after the publication of Jackson LJ’s final report.

Currently, lawyers can double their fee by charging a 100% uplift under conditional fee agreements (CFAs) in “no win, no fee” cases.
According to Straw, such generous fees are not justified in defamation cases due to their high success rate. Instead, he proposes that the success fee be no more than 10%.

The proposal, outlined in the Ministry of Justice consultation paper, Controlling Costs in Defamation Proceedings – Reducing Conditional Fee Agreement Success Fees, follows concerns that the cost of defending defamation proceedings is stymieing freedom of expression. Potentially ruinous legal costs are deterring the press from publishing articles that are in the public interest, or forcing them to settle rather than defend actions. Straw said: “Lawyers need to recover their costs and be rewarded for their efforts and the risks they undertake when providing people with access to justice in ‘no win no fee’ cases.

“But evidence suggests that the regular doubling of fees that currently takes place is simply not justified and the balance of costs between claimant and defendant needs to be reconsidered.”

“Sir Rupert Jackson’s comprehensive review of costs in the civil courts, which was published last week, proposed a broad range of recommendations for reform.  I welcome that substantial and detailed report and I look forward to considering the proposals in detail. But the case for an urgent interim measure for dealing with success fees in defamation cases has become clear.”

The consultation closes on 16 February 2010.
 

Issue: 7401 / Categories: Legal News , Fees , Personal injury
printer mail-details

MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
The Senior Courts Costs Office has clarified that judges conducting detailed assessment proceedings cannot order security for costs—a ruling that may leave successful parties exposed to further litigation expense
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
back-to-top-scroll