Justice secretary to outline Jackson next steps
Ken Clarke has confirmed that the government will press ahead with its Jackson review inspired reform of civil litigation costs.
The justice secretary told Radio 4’s Today programme that while the government was not abolishing ‘no win, no fee’ agreements, it was reversing changes the previous Labour government had made to the way they operate.
Clarke is due to make an announcement in the House of Commons later today to outline the government's proposals, in which he is expected to implement Jackson’s recommendation that winning solicitors should receive a portion of any damages awarded rather than claiming success fees.
He also said that he wants to introduce broader reforms of the civil litigation system. “The ordinary man or woman has a mortal dread of existing system,” he said.
ABI director of general insurance and health Nick Starling welcomed Clarke’s comments. He said “These reforms should be good news for genuine claimants, who too often struggle to get fair compensation under the current system. The ABI has long campaigned for reform that puts the genuine claimant at the heart of a simpler, faster, more cost-effective system.
“For too long ambulance-chasing lawyers and claims management firms have encouraged many people to believe that there is a compensation culture to exploit. The result has been a slower process for genuine claimants, and out of control legal costs that end up being paid for by all consumers through higher insurance premiums. Currently, for every £1 motor insurers pay out in compensation, an extra 87 pence is paid in legal costs.
“By implementing in full the recommendations of Lord Justice Jackson’s review of civil litigation, the Government can address the injustices of our civil justice system. And motorists, who are paying an extra 10% on their motor insurance as a result of high legal costs in settling personal injury claims, can look forward to cheaper insurance in the future.
“The final part of the reform process must be the abolition of referral fees and we urge the Government to ban them.”
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