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ARTICLE · 05 APRIL 2011

"No Win, No Fee", No More?

CMS Cameron McKenna Nabarro Olswang
Explore more from CMS Cameron McKenna Nabarro Olswang

The United Kingdom will change how solicitors are paid in "no-win no-fee" court cases to stop spiralling costs from harming the legal system, Justice Secretary Kenneth Clarke announced on Tuesday.

United KingdomLitigation, Mediation & Arbitration
Tim Hardy
Tim Hardy
Juliette Huard-Bourgois
Juliette Huard-Bourgois
Will Turner
Will Turner

The United Kingdom will change how solicitors are paid in "no-win no-fee" court cases to stop spiralling costs from harming the legal system, Justice Secretary Kenneth Clarke announced on Tuesday. In a statement to Parliament, he outlined a new civil justice system in England and Wales under which the "success fees" charged by solicitors on CFAs, as well as ATE insurance premiums, should no longer be recoverable from the losing defendant but could instead be deducted from damages awarded to the successful claimant.

In respect of personal injury cases, the total success fee would be capped at 25% of the total damages. To compensate successful claimants in such circumstances, it is proposed that the damages payable would be subject to an uplift of 10%. Besides, in civil litigation, the Government will lift the restriction on the use of damages-based agreements (DBA/contingency fees) as it considers that such agreements will provide a useful form of

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