In a written statement to Parliament on 26 July 2010, the government announced its intention to consult in the autumn on implementing a number of the recommendations in Lord Justice Jackson's final report on civil litigation costs, published on 14 January 2010. In particular, the government will seek views on Lord Justice Jackson's recommendations that:
• conditional fee agreement (CFA) success fees and after the event (ATE) insurance premiums should cease to be recoverable from the opposing party in litigation; and
• contingency fees (where the lawyer is remunerated by way of a share in the client's damages) should be permitted.
This announcement has been the first concrete indication that the new coalition government supports Lord Justice Jackson's key recommendations and intends to move forward with their implementation "as a matter of priority". Whilst the proposed reforms to the CFA / ATE regime are likely to have the most dramatic impact in personal injury cases, they are relevant to businesses generally, especially when defending claims. The introduction of contingency fees is of potential relevance in all litigation, including commercial litigation.
The government's announcement notes that work is also progressing on various other areas which are covered by Lord Justice Jackson's costs review but will not form part of the government's consultation. This includes a range of judiciary-led initiatives relating to costs and case management, such as the pilots of Lord Justice Jackson's costs management proposals and the new pilot of the proposals for concurrent expert evidence (known as "hot tubbing") in various courts around the country. There is no word as yet on proposals to introduce the new "menu" system for disclosure in large commercial and similar claims.
For more information, please see our e-bulletin dated 27 July 2010.
Location