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Lord Faulks QC, Minister of State for
Civil Justice has confirmed that the Jackson reforms will apply to insolvency litigation from April 2016. This means that the provisions in relation to the non-recoverability of both success fees (under conditional fee agreements) and insurance premiums
(under After the Event insurance) will apply to insolvency litigation claims.
The application of the Jackson reforms was delayed in relation to insolvency litigation due to the government requiring additional time to see how the reforms would impact, in particular in relation to the substantial revenue to the taxpayer from such
claims. The current exemption is set out in CPR PD 48, para 3.1 and there had been lobbying for the exemption to be made permanent. It is now clear that that will not happen.
For full details, see Lord Faulks QC's written statement to Parliament on Insolvency Litigation in full.
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Janna is a dispute resolution lawyer. She deals primarily with cross border issues and is active in the work being undertaken in relation to the implications of Brexit for Dispute Resolution lawyers. Janna also heads up a LexisNexis costs team bringing together expertise from across the company to deal with the costs issues facing the profession.
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