Breaking: Jackson reforms to apply to insolvency litigation from April 2016

budgetcebLord 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.

Relevant Articles
Area of Interest