header-logo header-logo

Straw proposes fee cut

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

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

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The dangers of uncritical artificial intelligence (AI) use in legal practice are no longer hypothetical. In this week's NLJ, Dr Charanjit Singh of Holborn Chambers examines cases where lawyers relied on ‘hallucinated’ citations — entirely fictitious authorities generated by AI tools
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
back-to-top-scroll