Justice written question – answered at on 26 April 2011.
To ask the Secretary of State for Justice with reference to the Government response to Lord Justice Jackson's recommendations for reforming civil litigation funding and costs in England and Wales, Cm 8041, March 2011, what steps he intends to take to ensure that defendants do not exploit the caps on claimants' costs by outspending the ability of a claimant to pursue their claim.
The package of measures the Government are taking forward is designed to make the costs of civil litigation more proportionate. In personal injury claims, a regime of qualified one way costs shifting will be introduced, which will mean that the majority of defendants will not recover their costs in cases which they win. In other areas, the proportionality test will mean that if a winning defendant has spent a disproportionate amount on the case, they will only be able to recover a proportionate sum. Finally, it is not the claimant's costs which will be capped by the reforms. It is the amount of damages which may be taken as part of the lawyer's fee. In personal injury cases this will be subject to a cap of 25% of damages, excluding those for future care and loss.
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