press release
Government backs Jackson reforms on civil litigation costs
17 November 2010
The Government has given its clearest indication yet that it
intends to push through Lord Justice Jackson’s recommendations to
reform civil litigation costs.
The Government’s consultation paper, which focuses primarily on
litigation funding arrangements and personal injury claims in
particular, offers its support for many of Jackson’s key proposals
including abolishing the recoverability of success fees or ATE
premiums from the losing party, the use of qualified one way costs
shifting and damages based agreements and enhanced penalties under
Part 36 offers.
However the Government remains silent on Jackson’s
recommendation to abolish referral fees and wants to wait until the
Legal Services Board completes its review before arriving at a
decision.
Nichola Evans, Partner at insurance law firm Browne Jacobson,
commented:
“Whilst there is a strong focus within the consultation on
personal injury litigation, a number of the proposed reforms would
have wider ranging effects.
“Clearly these proposals offer both opportunities and threats to
the insurance industry. Whilst it is understandable why some
insurers will be less than enamoured with the Government’s support
for Jackson’s proposals on ATE insurance, the opportunity for the
industry to work with Lord Young on expanding the role of BTE legal
expenses insurance both for individuals and business should not be
missed. Liability insurers will also breathe a sigh of relief as
they should see a reduction in the cost of litigation even with the
proposed changes to Part 36 offers and the increase to general
damages.
“Whatever changes are finally implemented it is important that
we have a regime that not only creates a more equal division of
litigation risk between parties but is watertight as possible and
not open to widespread abuse by unscrupulous individuals.
“The insurance industry now has less than three months before
one of the most important consultations affecting the future of
civil litigation costs in this country comes to a close.”
The consultation on proposals for reform of civil litigation
funding and costs in England and Wales closes on 14 February 2011.
An online consultation questionnaire is available at
http://www.justice.gov.uk/