Oral Answers to Questions

Andy Slaughter Excerpts

Tuesday 13th September 2011 Commons Chamber

[Mr Clarke]

As I suggested a moment ago, I regard it as just a little disingenuous—I hate to say that about UN agencies—to suggest that we are in any way undermining the jurisdiction here for dealing with racial discrimination or serious personal injury cases involving British companies. What we are talking about is how much the lawyers are paid by way of success fees and other costs. The Trafigura case was a classic scandalous personal injury case involving a British company and an incident in Côte d’Ivoire, in which £30 million in compensation was awarded by the British courts to the plaintiffs and £100 million was paid in legal costs to those who brought the action. All we are doing is going back to where no win, no fee used to be—in getting the costs and the claims back in proportion to each other.

[Mr Andy Slaughter (Hammersmith) (Lab)]

What we are talking about is whether such cases will get into court at all under the regime that the Government are proposing. It appears they will not listen to Her Majesty’s Revenue and Customs on insolvency, or to Amnesty International, Oxfam or the United Nations on multinational cases. Now, Admiral, the leading specialist motor insurer, is saying that premiums will go up as a result of the proposals. Is it not time to think again, and to stop favouring insurance companies, crooks and multinationals over their victims?

[Mr Clarke]

If the hon. Gentleman wants to widen this argument, which is perfectly legitimate, to include a general proposition as well as multinational company cases, the questions must be: how much is proportionate to the claim when it comes to paying costs, and what effect does no win, no fee, since it was changed, have on the judgment on both sides? We do not want such cases to be such a high earner for the plaintiffs’ lawyers that they are prepared to bring more speculative cases, which is happening at the moment. Nor do we want pressure to be put on defendants who have a perfectly sound defence, forcing them to say, “We cannot defend ourselves, because it will cost us less to pay a nuisance fee by way of settlement.” Justice involves striking a balance between what the lawyers are paid and what the plaintiffs get by way of compensation.