Jackson reforms: review now expected 2018

budgetcebLord Faulks QC, Minister of State for Civil Justice, has confirmed that the post-implementation review of Part 2 of the Legal Aid Sentencing and Punishment of Offenders Act 2012 (LAPSO 2012) will take place towards the end of the previously announced period, being April 2016 to April 2018.

LAPSO 2012, Pt 2 deals specifically with litigation funding and costs.

It includes:

  • payments for legal services- including conditional fee agreements, damages based agreements (DBAs), recovery of insurance premiums, recovery for a body which undertakes to meet costs liabilities
  • offers to settlement - an additional amount to the successful claimant
  • referral fees
  • pro bono representation

All these areas will be subject to the review.

It should be noted that:

  • mesothelioma claims were excluded in relation to the changes resulting in the non-recovery of success fees and insurance premiums. The review will cover LAPSO 2012, s 48 in relation to such claims
  • while DBAs were implemented as part of the Jackson Reforms through the Damages Based Agreement Regulations 2013, SI 2013/609, there were serious reservations about the provisions within the regulations and how they would apply in practice. As a consequence, the use of DBAs has been extremely limited resulting in the Courts and Tribunals Judiciary undertaking a consultation process to review the regulations and make various recommendations.

For information on the recommendations Subscribers to LexisPSL dispute resolution can access our News Analysis: Reform of Damages Based Agreements – CJC recommendations published (take a free trial here to access if you are not a subscriber).

The results of consolidation are currently with the government for consideration. It is anticipated that new regulations will be forthcoming for civil and personal injury claims in 2016 and that a separate regulation will apply for employment claims

The written statement confirming the review, and which also deals with the coming to an end of the exemption for insolvency litigation, is available in our previous post.

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