Woe unto you also, ye lawyers
Posted: Tue Mar 29, 2011 10:13 pm
Kenneth Clarke today sounded the death knell for 'no win, no fee' deals that encourage ambulance-chasing lawyers to pursue frivolous cases.
Victorious solicitors will now have to take a share of the damages awarded, rather than claiming huge success fees.
The Justice Secretary also raised the maximum damages which can be awarded in small claims courts from £5,000 to £15,000.
Mr Clarke wants as many people as possible to settle civil disputes through this less bureaucratic system, where costs are kept to a minimum, or by mediation.
Lawyers are not always needed in small claims courts, and many 'no win no fee' solicitors do not operate in them because there is not enough money to be made.
Everybody lodging a civil claim for damages will be forced to consider mediation. A similar move is planned for divorce cases.
Mr Clarke said the aim is to reverse a trend which has seen Britain become a 'very, very legalistic and litigious' society in which huge sums are paid to 'fat cat' lawyers.
Many of those in 'no win, no fee' deals claim success fees of up to 100 per cent of legal costs at the expense of the person or organisation that loses. Some claims are more than 1,000 per cent of damages.
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