Deafness Claims News.

 

Lord Jackson Update

On 14th January 2010, Lord Jackson published his report dealing with the costs of civil litigation particularly the costs of personal injury claims. Lord Jackson has recommended the implementation of fixed costs across the board in personal injury cases and also that success fees and after the event insurance should no longer be recoverable from the losing party. 

This has alarming implications for Claimants who now face deductions from their compensation if the recommendations are implemented. In fast track cases, Defendants will be able to delay matters and fail to make appropriate admissions in order to price the claimant’s Solicitor out of the claim so that the claimant faces having to pay any shortfall in costs out of their damages. In multi track cases, Claimants will face deductions from damages. Lord Jackson concedes this “lawyers will still be able to agree CFAs with their clients, but any success fee will be payable by the client. This is likely to mean that the success fee comes out of the damages awarded to the client”. The success fee could amount to 25% of the claimant’s compensation for past losses and pain and suffering. In addition, Lord Jackson considers that disbursements in unsuccessful cases must be borne either by the claimants or by their solicitors. This will act as a clear deterrent to claimants in bringing a claim.

The report does not make any recommendations for controls on the behaviour of Defendants and recommends no other review of the system to ensure that Defendants are penalised for failing to comply with protocols etc.

Oliver & Co have been concerned about this review and were involved in the consultation process from the outset. We made submissions to Lord Jackson in July of last year outlining our concerns. We also set up an online petition to the Government to reject the recommendation that fixed costs be extended across the board. At the time the petition closed we had well over 1,000 signatures in support. The Government responds to petitions where there are more than 500 signatories but we await their response to our petition despite the petition closing in December 2009.

Rhonwen Barraclough and David Owen of Oliver & Co have also had meetings with MPs about the implications of the recommendations. Most recently, they met with Paul Rowen the MP for Rochdale who was interested in our concerns and, in particular, the impact on those individuals suffering from Industrial Diseases such as mesothelioma, asbestos and industrial deafness.

Rhonwen Barraclough explained to Mr Rowen that when the civil legal aid was abolished in 1999 Parliament made promises that Claimants would not face deductions from damages as a result. Lord Jackson’s recommendations seek to do precisely that but worryingly many of the recommendations can be imposed without being debated and approved by Parliament. Mr. Rowen agreed to ask Parliamentary questions of Mr Jack Straw MP on this issue. Those questions were asked on Tuesday 9th February 2010. Mr. Rowan MP referred Jack Straw to the promises made in Parliament in 1999 and also asked him to consider the fact that ordinary men and women would be adversely affected by implementation of the recommendations. Mr Straw stated that he did not share that view of the impact of the proposals but that all of the recommendations were being looked at in the round and the economic implications of the recommendations were also being considered. Mr. Straw described the report as ‘remarkable’ and ‘imaginative’.

It appears therefore that there is no ringing endorsement of Jackson’s recommendations by the Government and that there will be further consultations and reviews before any decision is made as to which, if any, of the recommendations will be accepted. Oliver & Co continue to lobby MPs to reject the proposals as we firmly believe that Claimants are entitled to retain 100% of their compensation and Claimants should not be deterred from pursuing a personal injury claim simply because they are faced with having to pay a proportion of their damages if they win and face having to pay medical expenses etc in the event that their claim is unsuccessful.

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