Following sending my MP one of the many generic letters doing the rounds in objection to the above bill, I received a response stating.
"In recent years the system has become unbalanced, fuelled to a significant extent by the way that 'no win, no fee' conditional fee agreements now work. They have played an important role in extending access to justice but they also enable claims to be pursued with no real risk to claimants and the threat of excessive costs to defendants....Following careful consideration...the Government has decided to reform no win no fee arrangements to stop the perverse situation in which fear of excess costs sometimes forces defendants to settle, even when they know they are right."
Having worked in the coal face of costs for many years, I am yet to see any evidence that Defendant Insurers make economic decisions to settle purely because of the risk of excessive costs due to the additional liabilities. The significant costs in Campbell v MGN prove that. If anything, with there being After the Event Insurance, they are better off under the present regime - in the future, they will be forced to litigate to trial and due to one way costs shifting, will not be able to recover a penny.
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