The end for success fees?

Lord Justice Jackson’s proposal for reform of the civil costs system, which previous allowed Claimant solicitors to charge sometimes huge success fees for cases getting anywhere near trial at colossal expense for public bodies such as the NHS, are to become law.

The system’s defendants claim that there will be an impact on access to justice as some claimants may no longer be able to afford to bring cases. However, general damages are to increase by 10% with success fees to be capped at 25% of damages in personal injury cases. This passes the burden of paying success fees to claimants rather than defendants.

As a former defendant solicitor I can see both sides of this argument. It’s clearly absurd to have a situation where defendants have to pay more in costs than damages due to success fees. However, it is also of concern that the government’s proposals may make it less economic for firms to take on some cases. Even if a case is of relatively low value, it can be greatly important to the parties.

Either way, the gravy train has left the station, and the NHS estimate that the change will save them £50m a year.

Legal Week has canvassed opinion from both Claimant and Defendant sides of the fence - a useful resource to bring home to your students the differing points of view on this topic.