The Law Column: 'No win No fee' agreements back on agenda

22.05.12

Legal claims funded by ‘no win no fee’ agreements have burst back onto the scene in the last few days, as the Government’s Bill to reform the system of litigation funding continues its progress through Parliament.

Is this the beginning of a rearguard action by claimants and their lawyers?  Probably.  But it would have been naïve to think that such a lucrative revenue stream would be given up without a fight.

Readers will probably be familiar with the workings of ‘no win no fee’ agreements and the chilling effect they have on freedom of expression – but a quick recap might be useful.

Essentially, lawyers agree with their claimant clients that the legal fees incurred in bringing claims will not be paid by the claimants themselves, but by the (losing) defendants if and when the claims succeed.

As a reward for taking the risk of not getting paid, the lawyers are entitled to claim an uplift of up to 100% on their base hourly rates, the so-called “success fee”.  As a result, publishers frequently face claims for costs based on hourly rates of £700, £800, or even £900 per hour.

Source: HoldTheFrontPage.co.uk