Civil Litigation Funding and Costs

Wednesday 12th December 2012 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

In the context of his “An Inquiry into the Culture, Practices and Ethics of the Press”, Lord Justice Leveson recommended that costs protection should be extended to defamation and privacy claims. This would mean that individuals of modest means should not be in the position of bringing or defending actions without some form of protection against having to pay the other side’s costs if the case is lost. The Government have accepted this recommendation and I am therefore today announcing that provisions relating to sections 44 and 46 of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012, which would remove the recoverability of success fees and insurance premiums, will not come into force for defamation and privacy claims until costs protection has been introduced for these proceedings.

The Government have already asked the Civil Justice Council (CJC) for advice by the end of March 2013 on this issue. Given that the reforms in part 2 of the LASPO Act generally come into effect on 1 April 2013, this short delay in implementation will mean the protection which currently exists through recoverable insurance premiums will continue until a new regime of costs protection can be implemented through changes to the civil procedure rules.