Appeals court judge Lord Justice Jackson has warned that lawyers and solicitors who operate on a no win no fee basis could soon have their income slashed if proposed new laws are passed. Lord Justice Jackson is currently conducting a review into the costs of legal action, following concerns that losing a case can result in bankruptcy for the losing business or individual. Lord Justice Jackson has raised concerns at this possibility, and says the no win no fee arrangement enshrined in the Conditional Fee Agreement, whereby the losing side must pay the legal costs incurred, has contributed the existence of this possibility.
Lord Justice Jackson has called for a cap on legal costs to be set at 25 per cent of the value of a settlement. While this would help to protect the losing party, it would also ensure that money is not diverted away from victims.
The no win no fee arrangement has come under increased scrutiny in the past few years. Although the laws were initially passed to create wider access to the justice system, there have been allegations that legal firms are taking advantage of their rules to maximise income.
Judge Warns Solicitors of Potential Changes to No Win No Fee Arrangement
Tue, 19 Jan 2010
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