Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Helen Jones and Jonathan Djanogly

Tuesday 17th April 2012 Commons Chamber

[Mr Djanogly]

Let me repeat what I said: this is not a question of whether the person making a claim has a valid claim but of how much his lawyer gets paid. That is what we are looking at, and that is where the system needs reform. To be clear—I say that because I have heard that some hon. Members are not clear about this specific point—I emphasise that under our proposals the client’s lawyer’s costs will still be recoverable from the losing other side.

However, clauses 46 and 48 abolish the recoverability of the success fees and insurance premiums that have pushed up prices for everyone.

[Helen Jones]

Is the Minister aware that the lead asbestos case was very complicated and took six years to get to the Supreme Court? Does he really think that lawyers will take those kinds of cases without an assurance that their costs will be met?

[Mr Djanogly]

As I have just said, lawyers’ costs will be met in the usual way. What we are talking about is the success fee. That is where the problem has come into the system.

[Helen Jones]

Will the Minister give way?

[Mr Djanogly]

No; if the hon. Lady listens, I will answer the question.

Our reforms are intended to redress the unfairness that exists in our civil litigation system between claimants and defendants. They will move conditional fee agreements back to the position that they were in before the Opposition’s disastrous reforms in the Access to Justice Act 1999. Our proposals are premised on the similar treatment of classes of cases, based on the costs or difficulty of bringing a claim. The Lords amendments would introduce a new unfairness between claimants, based only on the type of disease or illness, and essentially dependent on whether it was caused in the workplace.

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[Mr Djanogly]

I am actually saying quite the opposite. I am saying that damages are going to be increased, not decreased.

The aim of our reforms is to end the current situation whereby legal firms can get away with charging what they want because the claimants do not have a stake in keeping an eye on the bill. At a time when the cases in question are becoming easier to bring, we should not accept amendments that would reduce pressure on legal firms to cut their fees. Instead, our focus should be on cutting inflated margins, not making exemptions for one type of disease.

I understand claimants’ fear of being left liable for high defendant’s costs should they lose, but under our reforms, we are protecting personal injury claimants from the risk of paying such costs, including in industrial disease cases, by introducing qualified one-way costs shifting.

[Helen Jones]

Even if I accepted the Minister’s argument about plaintiffs keeping an eye on fees, which I do not, how would someone with no legal training who was dying of mesothelioma be supposed to keep monitoring their lawyers’ fees?

[Mr Djanogly]

People entering into a conditional fee agreement have a relationship with their lawyer, and it is quite right that someone who employs a lawyer has some idea of what is on that lawyer’s clock and what they are charging. That is very important. If someone is sick, they will have family who can help them through their sickness.

The Government are determined to see more proportionate costs in civil litigation, with greater fairness in the risks borne by parties. Without our reforms, high and disproportionate costs in civil litigation would continue. Moreover, if the Lords amendments were accepted, claimants in mesothelioma cases would have an advantage over others who may be suffering from equally debilitating conditions. That cannot be justified.