Clampdown on success fees expected

The government is on the verge of unveiling the next steps in its drive to cut civil litigation costs.

Insurance Times has learnt that the Ministry of Justice (MoJ) is expected to set out tomorrow its proposals regarding how and when to implement Lord Justice Jackson's review.

The MoJ’s anticipated announcement follows consultation on its civil litigation reform package which concluded in February.

The next steps plans are expected to include the introduction of a test designed to ensure that fees bear a closer relation to damages awarded and a cap on lawyers' success fees, as recommended by Lord Jackson.

The MoJ is expected to make a related announcement at the same time or shortly afterwards about a new consultation dealing with extending the RTA claims process.

The anticipated launch of the Jackson next steps package follows last week’s Budget in which Chancellor of the Exchequer George Osborne pledged to restrict so called ‘no win, no fee’ arrangements.

He also said that the government planned to implement the Young review of health and safety, the recommendations of which dovetail with Jackson’s.

A MoJ spokesman said: “The consultation “Proposals for reform of civil litigation funding and costs in England and Wales" – which sought views on implementing a package of Lord Justice Jackson's proposals for reforming conditional fee agreements and other aspects of civil litigation funding and costs closed on Monday 14 February 2011. The Government will respond in due course."