Massive Litigation shake-up proposed

02 April 2010



Lord Justice Jackson's eagerly awaited final report outlining proposed changes to the British system of civil litigation has been published and promises a massive shake-up of the current system, which is considered to impose excessive costs on losers in litigation.

Among the changes proposed (but not yet law) are:

• The end of the 'loser pays' principle in British law. A winning defendant's costs will normally no longer be payable by the claimant in those instances in which the claimant is normally an individual and the defendant an organisation;

• The end of the current system of 'no win, no fee' agreements by making lawyers' success fees and the costs of 'after the event' insurance premiums paid irrecoverable from the losing party; and

• Allowing lawyers to charge contingency fees, so that they receive a percentage of the judgment sum and take the risk of not being paid if the case is not won. This currently occurs in USA.

The current pre-action protocols are to be retained and judges are to be encouraged to become more involved with cases to assist in controlling costs.

Matthew Brandis, practice group leader of the Litigation and dispute resolution practice group comments: "The proposed changes are wide-ranging. We will keep you updated of the changes when they take effect."

The 584-page report can be found at www.judiciary.gov.uk.

If you require legal advice, for either your private affairs or organisation, please call Thames Valley based B P Collins Solicitors on 01753 889995, complete the online enquiry form or email enquiries@bpcollins.co.uk.