Civil Litigation Reforms – Good News and Bad

Written by BFM Associate Member and preferred insurance broker Sagar Insurances
sagar brokerage iconThere’s some good news for the region’s businesses as costs awarded in civil litigation cases are about to be properly capped and governed. But this could also result in a substantial increase in the volume of claims, and some serious legal headaches for firms.

The proposed changes could stimulate a wave of weak and long standing claims – even fraudulent and speculative ones – and firms are being warned to make sure they are ready.

Following a review by Lord Justice Jackson in to spiralling costs awarded in civil litigation – some of which over-shadow the actual value of the claim – the Government has announced reforms to take effect from 1st April 2013.

The aim is to make legal cost claims more proportionate, and control “no win, no fee” cases which distort the merit of the case and the eventual outcome for defendants.

The proposed fixed fee regime where there is early admission and settlement could prove a good thing for companies. However, experts in our claims team are warning firms that there are some pitfalls and dangers to the reforms, and it is vital they collect relevant information, review any likely outstanding potential claims against them and seek advice.

There could be an upsurge in old, weak claims now that cost liabilities have been capped and controlled.
For all the advantages and disadvantage of the proposed reforms, read the comprehensive advice document here:
Sagars Civil Justice Reforms Information.

If you wish to contact Sagar direct to discuss your potential civil litigation issues and how they affect your insurance please contact: Simon Whittaker.

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01254 770828