No win, no-fee claim news
15/01/2010

Report recommends injury compensation changes

A government review headed by Lord Justice Jackson has recommended a dramatic shake up of the UK's no-win, no-fee claims system.

The report called for a "significant cost saving" to be made by ending the principal of having a defendant paying a success fee in a no-win, no-fee claims case.

Instead, it suggested that personal injury lawyers receive a cut from payouts received by claimants, a scenario which would compromise the future of 100 percent compensation settlements.

However, in order to try and offset the inevitable reduction in sums received by claimants, Lord Justice Jackson called for there to be a 10% rise in the award of payouts.

"The focus of our litigation process should be upon compensating victims, not upon making payments to intermediaries and others who have moved in recent years into the personal injury compensation process," Lord Justice Jackson said.

"The fact that such substantial referral fees are being paid illustrates that there is too much money swilling around in the personal injury compensation process."

Not everyone believes that the recommendations would improve the no-win, no-fee claim process, some say it may result in some claimants suffering diminished access to civil justice.