Government Proposals Could Mean Accident Victims Lose Out

The Ministry of Justice announced this week that it would be consulting on major reforms to the way “no win no fee” claims operate.

Under the current arrangements, which have been in place for over a decade, a person who makes a successful claim is entitled to have all of their costs and expenses paid by the losing party. So a man injured at work because of sloppy health and safety can sue his employer knowing that it will not cost him a penny to bring a claim.

If the proposals set out by the government in its consultation - Solving Disputes in the County Courts – are made law; this will change.

The Government proposes that in future when an accident victim brings a successful claim some of the damages they receive for their injuries will go towards their legal costs.

Not surprisingly many lawyers who represent accident victims are disappointed by the proposals. Martyn Brown, solicitor at Integrum Law commented “Damages for pain and suffering in England and Wales are not the most generous, particularly when compared to countries like the USA, yet the government proposes to take some of those damages away from innocent accident victims”.

Martyn adds “these proposals are the government’s response to pressure from big businesses who blame the so-called ‘compensation culture’ despite the fact that all research shows that it is a myth. The government also points to rising insurance premiums but ignores the fact that insurance companies continue to report massive profits and wrongly blame ‘no win no fee’ for their increased premiums”.