No win, no fee reforms 'could save millions'
Posted: Fri Jan 15, 2010 12:47 amLawyers in "no win, no fee" civil cases should no longer have a "success fee" paid by the defendants, but should get a share of damages, a review has said.
Lord Justice Jackson found huge rises in civil litigation costs in England and Wales in recent years and said reforms could save people millions.
The system was not benefiting the public, with fees to lawyers sometimes more than 1,000% of damages, he said.
The government said it would consider the "significant recommendations".
The report said a "significant cost saving" could be made by ending the system of defendants paying success fees and footing the bill for insurance against a failed claim.
Currently, defendants can face a total bill four times the actual cost of a civil action.
The report suggested a 25% limit on the share of damages paid to lawyers in a successful claim.
It also called for a 10% rise in damages pay-outs to ensure claimants were still properly compensated.
With any luck this will put a stop to the current practice of making spurious legal claims against random victims for the sole purpose of settling out-of-court for an exhorbitant lawyer's fee.