< Back to previous page

"No win, no fee" reforms fall through

Published on 7 Apr 2010 under category: legal

Success fees from damages in "no win, no fee" cases will not be capped at ten per cent, following the government's failure to push through the controversial legislation before the election.

A backbench rebellion reported in the Times earlier this week came to pass today (April 7th) as MPs refused to allow the government to use an order that does not require a vote from Parliament.

The proposals for the reformed fee system had cross-party support and would have seen the "contingency fee" thrown out of the legal system.

Contingency fee payments allowed claimants to take legal action without fearing a loss, but also enabled lawyers to claim fees from clients that in some instances totaled the winning damages.

The move would have been part of a wider reformation of libel laws in the UK.

Last month, justice secretary Jack Straw said that the next government would focus on getting rid of "libel tourism".

If you require advice on Commercial Litigation please call us on +44 (0)20 7831 0101 and ask for Andrew Pena.