Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Chris Bryant and Jonathan Djanogly

Wednesday 2nd November 2011 Commons Chamber

[Mr Djanogly]

Amendments 21, 22, 72, 163, 164 and 165 all seek to undermine a fundamental element of the package of reform of civil litigation funding and costs based on the report prepared on behalf of the judiciary by Sir Rupert Jackson and now included in this Bill—the abolition of recoverability of success fees and after-the-event insurance premiums. I must say that I am rather perplexed by the amendments as in Committee the hon. Member for Hammersmith (Mr Slaughter) agreed that the intention of part 2 is

“perfectly sound, and it is one with which we have a great deal of sympathy.”––[Official Report, Legal Aid, Sentencing and Punishment of Offenders Public Bill Committee, 13 September 2011; c. 501.]

I will also deal with new clause 39, which is on the related but slightly separate matter of recoverable costs for low-value road traffic accident claims.

It is worth emphasising, as the Justice Secretary has just said, that we are not proposing to end conditional fee agreements or no win, no fee deals. What we are addressing is the substantial legal costs that go to lawyers under the current no win, no fee regime. Our reforms are designed to make these legal costs more proportionate, while enabling meritorious claims to be brought. This applies equally to defamation and privacy claims and multinational claims as to other categories of case, but it is worth reminding ourselves of some of the disproportionate costs that have arisen and that emphasise the need for our reforms across the board.

[Chris Bryant]

The Minister referred specifically to defamation and privacy cases. The problem is that in the vast majority of cases—and in every single instance in privacy cases—the awards are so small that if there is no success fee, it will be completely uneconomic for a lawyer to come forward with a CFA. That may not be the Minister’s intention—I take him at his word—but the effect will be to stop CFAs in libel, defamation and privacy cases.

[Mr Djanogly]

In some cases, where the balance is against, that perhaps should be the case. In Naomi Campbell’s defamation case against the Daily Mirror, she received damages of £3,500 but the total costs exceeded £1 million.

In relation to clinical negligence claims, which can of course include substantial damages in catastrophic injury cases, lawyers’ costs are about half of the total damages that are paid out. In 2009-10, for example, the NHS paid out £297 million in damages and £121 million in legal costs, over half of which were no win, no fee costs. One of the leading no win, no fee cases against a multinational company is that against Trafigura. In that case, the claimants’ legal costs were more than £100 million, but the damages recovered were only £30 million. As a result, 30,000 claimants in the Ivory Coast received damages of an average of only £1,000.

Oral Answers to Questions

Debate between Chris Bryant and Jonathan Djanogly

Tuesday 15th June 2010 Commons Chamber

[Mr Djanogly]

The mechanics of the scheme are being consulted on, and we hope to start making payments towards the end of this month.

[Chris Bryant (Rhondda) (Lab)]

In his capacity as the new anti-corruption tsar, will the Justice Secretary have a word with Andy Coulson? Andy Coulson and Rebekah Wade both admitted that they had paid police officers for information when running newspapers. They paid police officers; that is suborning a police officer. Will the Justice Secretary institute a review of the process whereby newspapers sometimes pay for information from police officers, and put a stop to it?