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Lawyers' fee in libel cases to be cut

The Justice Secretary, Jack Straw announced yesterday (19.01.10) that Lawyers who charge a ‘success fees’ on a 'no-win, no-fee' basis for libel cases should be capped from 100% to 10%.

The Ministry of Justice (MoJ) is proposing change to control the unreasonably high, court cases in defamation cases. Currently it is:

  • deterring journalists and writers from publishing articles which are in the public interest or
  • forcing them to settle rather than defend defamation actions.

Justice Secretary Jack Straw said:

Freedom of expression and investigative journalism are fundamental protections to the democracy of this country. I have recently announced a review of the law of libel, with a working group to consider whether the law of libel, including the law relating to libel tourism, in England and Wales needs reform, and if so to make recommendations as to solutions.

‘I am, however, aware of the growing concern about the high legal costs in defamation and some other publication cases brought under conditional fee agreements. Lawyers need to recover their costs and be rewarded for their efforts and the risks they undertake when providing people with access to justice in “no win, no fee” cases. But evidence suggests that the regular doubling of fees that currently takes place is simply not justified and the balance of costs between claimant and defendant needs to be reconsidered.

The proposal will  be subject to a consultation period of four weeks.

Posted 20.10.10