Personal injury solicitors may face a major shake up of the no win, no fee compensation process following the recommendations of a report by appeal court judge Lord Justice Jackson.
Responding to government calls to address the rise in costs associated with personal injury litigation in recent years, Lord Justice Jackson called for a ban on the operations of so-called "claims farmers" and an end to the system of having defendants paying a success fee to the personal injury solicitors of successful claimants.
In some cases, these success fees can be four times the value of damages received by a claimant and are, according to some critics, an unhelpful burden on liable parties such as insurance companies and NHS litigation authorities.
Justice Secretary Jack Straw described the report as "a remarkable piece of work which is based on extensive consultation and puts forward a broad range of significant recommendations for reform".
"I look forward to considering these proposals in detail," he added.
However, some personal injury solicitors have already voiced concerns that recommendations unfairly favour defendants and may result in fewer claimants being able to proceed with accident claims, even in cases where they have relatively strong grounds for receiving damages.
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