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10 April 2015 / James Whittaker , Dominic Vincent
Issue: 7650 / Categories: Opinion , Procedure & practice , Costs
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A temporary reprieve?

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Dominic Vincent & James Whittaker discuss the delay to the introduction of the LASPO provisions for insolvency cases

The recent ministerial statement confirming that the government will delay the prohibitive effects of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) in relation to insolvency proceedings has been warmly welcomed by insolvency practitioners and those solicitors who represent them. Resulting directly from the recommendations of the 2010 Jackson reforms, one of the main effects of LASPO was intended to be the prohibition of the recovery of “no win no fee” success fees and of after-the-event (ATE) insurance premiums from unsuccessful parties in litigation. The LASPO prohibitions came into general effect on 1 April 2013 for the majority of litigation cases and were intended to come into effect for insolvency litigation cases in April 2015. However the ministerial statement published on 26 February 2015 makes it clear that the government will delay the introduction of the LASPO restrictions in insolvency proceedings

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