Legal Ruling Constrains Libel Lawyers

Tue, 09 Mar 2010

Jack Straw has ruled that the legal costs charged by libel lawyers should be cut significantly. As part of the changes, which come into effect next month, libel lawyers will no longer be able to double their legal costs if they win their case. The Justice Secretary has ruled that the success fees of libel solicitors who operate on a no win no fee basis should be limited to 10 per cent above their costs.

The ruling has been labelled a victory for Press freedom, after the Commons Culture, Media and Sport select committee advised that the high legal costs were curtailing investigative journalism. With newspapers facing huge legal costs from libel law firms, they would sometimes be forced to settle cases they may have been able to defend to avoid the huge costs. The decision will also allow scientists to defend any publications critical of leading drugs firms and their products.

The legal industry has long since been criticised for its high legal costs, with suggestions of a lack of accountability of the costs charged by legal firms . The new ruling will mean solicitor accountability is made easier.
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