header-logo header-logo

Jackson-style CFAs plan

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

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

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll