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20 January 2010
Issue: 7401 / Categories: Legal News , Fees , Personal injury
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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
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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

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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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