No win nofee libel charges cut

Justice Secretary Jack Straw is to cut the "success fees" lawyers can charge in defamation cases, to reduce "disproportionate" legal bills.

According to Straw, the success fees would help level the playing field so scientists, journalists and writers could publish articles in the public interest, without incurring "such disproportionate legal bills".

He said lawyers operating no win no fee conditional fee agreements must cut their maximum charges from 100% to 10%.

Media groups say current laws stifle freedom of expression by forcing editors to avoid stories, because of the risks of highly expensive libel action.

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The changes will take effect in April and follow a Justice Ministry review.

Mr Straw said compensation claim lawyers are currently able to double their fees under no win no fee agreements by claiming the success fee of up to 100% on top of their normal fee, payable by the losing party.

He said the system would be re-balanced so the press could afford to defend defamation cases, while those who felt they had been defamed would still get access to justice. "This is a swift solution to an immediate problem," Mr Straw added.

Bob Satchwell, executive director of the Society of Editors, said it was a sensible and much needed reform that would help reduce the chilling effect of libel laws on journalism.

"It will also help scientists and doctors conduct serious debate about issues that could save lives," he said.

Updated on 08/03/2010

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