QUANTUM - no win no fee litigation funding
Rules on “no win, no fee” agreements set to change on 1 April 2013
On 1 April 2013 the so-called Jackson Reforms will take effect, fundamentally changing several key civil procedure rules. Arguably the most radical of these rule changes are the ones relating to “no win, no fee” arrangements, which state that CFA Success Fees and ATE insurance premiums will no longer be recoverable in commercial disputes from the losing side if the Conditional Fee Agreement or ATE insurance policy was entered into after 1 April 2013.
A number of new alternative funding arrangements are expected to become available after the Jackson Reforms take effect on 1 April 2013, with Damages Based Agreements (or DBAs) becoming available for the first time in England and Wales, alongside the revised rules for CFAs. However, the precise details of how DBAs and CFAs will work post-1 April 2013 are still awaiting publication.
With this in mind, we have for the time being temporarily suspended QUANTUM, our "no win, no fee" package for clients looking to explore alternative ways of funding their litigation. We will, however, be re-launching our QUANTUM litigation funding package as soon as possible after 1 April 2013, once the new rules regarding DBAs and CFAs have been clarified, so that we can continue to assist clients in managing the costs and risks involved in litigation.
If you are seeking a no win no fee package before these rule changes on 1 April 2013, then you will need to refer to other legal services providers that may be prepared to offer it. We would suggest trying the Law Society, which offers a “Find a Solicitor” service available at http://www.lawsociety.org.uk.
Please note that the abolition of the recoverability of CFA success fees and ATE insurance premiums will not apply to insolvency proceedings until 2015, and will not apply to defamation and privacy claims until appropriate costs protection rules have been introduced by the government (the date of which is still to be confirmed). Personal injury claims are also subject to further reforms that are distinct from commercial disputes.
If you would like further information regarding the effect of the forthcoming Jackson Reforms, please contact Stuart Evans by emailing Stuart or by calling him on 08450 990045, or speak to your usual contact in the Commercial Disputes Team.