No Win No Fee Lawyers Threatened?
The end of the road for no win no fee lawyers?
The future of no win no fee lawyers could be set to change, after the Justice Secretary Jack Straw announced he would cut the ‘success fees’ that solicitors can charge in cases of defamation to reduce what he describes as ‘disproportionate’ legal costs. With some lawyers now charging as much as 100% on no win no fee conditional arrangements, Mr Straw is now requiring legal firms to cut this to 10%. While media organisations claim that the current system allows fear of being sued by lawyers eager to get business, claims organisations are quick to point out that there needs to be a system to ensure that those who have been libelled get the protection they deserve.
There is no question that success fees can influence the amount of cases taken up, and this is claimed by media professionals to be hindering scientific and literary development as more authors and publishers are wary of producing anything that might attract a libel case. It is clear that while a reasonable way forward must be found to ensure both genuine victims of libel are protected and publishers are given the freedom to produce material that is not libellous, many claims professionals are arguing that this could be going too far.
“Genuine victims of libel deserve protection and appropriate compensation,” says managing director of compensation claims specialists 1stClaims Nicholas Jervis. “To reduce the success fees might make lawyers much more careful about taking on cases. The purpose of the success fee is to accept the substantial risks a lawyer takes on that if he loses the case he is paid nothing. It is not simply a bonus but a recognition of the commercial risks that they take on. Libel is a serious offence, and with many whose lives are ruined by libel, court and legal costs can deter them from making a claim,” he adds.
Nicholas Jervis has outlined a number of concerns about the Justice Secretary’s measures, adding, “For many who are libelled, a no win no fee lawyer is the only way to restore their reputation, and quite often, their career. Whilst we accept that proper scientific exchange and creative freedom is upheld, we must not go too far in these cuts, or genuine cases of libel could go unpunished by the courts.”
He acknowledges that there is room for improvement, but not at the expense of those who are in genuine need of a no win no fee service. “There is a case for reform, but this should be more than just about claims specialists, this is about ensuring the rights of UK citizens are protected,” he says. “There are many less publicised cases of libel that can cause just as much distress and damage to the life of the victim. It won’t just hurt the claims and compensation firms, as genuine victims of libel could also lose out.”
With changes by the Justice Secretary set to affect all levels of the media from the smallest local papers to the large broadcasting companies, editorial organisations claim that the cuts in the amount solicitors can charge in legal fees could even save lives, with scientists given the freedom to publish without fear of extortionate legal costs.
While costs in defamation cases have sometimes been hugely disproportionate to the damages the successful claimant who has been libelled might win, this recent move by Mr Straw has been described as ‘fundamental to the protection of our democracy.’
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