A Ministry of Justice (MoJ) spokesman said: "We are committed to reforming the 'no win no fee' system so that legal costs for reasonable compensation claims will be more proportionate, and avoidable claims will be deterred from going to court.
This will require changes to legal rules and regulations and we want to give sufficient time to get the complex details right. We are also conscious that legal businesses will need sufficient time to plan for the changes, alongside other forthcoming regulatory and funding changes to the industry."
Government insight
During the debate in the House of Lords, Lord McNally said the Government is:
- Not persuaded that qualified one way costs shifting (QOCS) is a suitable alternative to recoverable after the event (ATE) insurance in some non-personal injury claims. It will examine the experience of QOCS in personal injury claims before considering whether its use should be extended further.
- Supportive of non-recoverability of success fees and ATE premiums, except in relation to ATE insurance premiums in respect of clinical negligence expert reports.
- Supportive of non-recoverability of success fees and ATE insurance premiums in professional evidence claims involving building surveyors, accountants or solicitors.
Lord McNally made it clear that the Jackson recommendations are a package of reforms and the Government is taking concern not to dismantle it by accepting amendments that would do so. He also added that ministers "will not pander to or give special access to 'vested interests' such as the Law Society and the Bar Council".
MoJ under attack
At the same time, the Guardian has criticised the MoJ for the extent of its communication with the insurance industry. Confirming it makes no apology for providing evidence to policymakers to tackle the compensation culture, the ABI said that it, "unlike the claimant lawyer lobby, has provided the evidence and analysis to support our public policy positions rather than rely on rhetoric and anecdote."
A MoJ spokesman denied that the insurance industry had been given privileged access to the ministry: "Ongoing dialogue between government and stakeholders is an important part of policymaking. It is normal business to listen to a range of views." View the article on the Guardian website.
The Guardian article attacking the MoJ for its dialogue with the Association of British Insurers (ABI) highlights the strength of the campaign for maintaining the status quo. Implementation of these interlocking reforms (the cornerstone of Civil Justice Group) must remain our focus. Whilst this type of media campaign may make engagement with government more difficult we will continue to facilitate ongoing dialogue with policymakers and help ensure that implementation of the Jackson proposals occurs as intended.