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No win, no fee reforms are 'unworkable'

Published on 25 Mar 2010 under category: legal

The Jackson report's proposals on reforming 'no win, no fee' legal action are "illogical and internally consistent", according to one legal expert.

Kerry Underwood in The Times today (March 25th) writes that the key areas of concern are contingency fees and one-way costs shifting.

In particular, Ms Underwood considers the recommendation to consult independent advice to be problematic, as it would be inapplicable in any other industry.

Comparing the process of consultation to that of buying a car, she writes: "Why trust heavily regulated, disciplined and insured professionals less than a car dealer?

"Is a Mercedes dealer to refer a customer to another Mercedes dealer to check that the price given by the first one is acceptable?"

The lack of availability of expertise in Conditional Fee Agreement (CFA) in most towns would leave clients stranded, if they were forced to seek independent advice before signing a CFA with their preferred solicitor, according to Ms Underwood.

Changing the current nature of contingency fees to incorporate hourly costs paid by the other side would also create the risk of 'rapid undersettlement' as they would eliminate the incentive of settling as quickly as possible, she added.

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