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Government to reassess ‘no win no fee’ agreements

Government ministers are to review the ‘no win no fee’ legal system amid fears that the rising number of compensation claims is muting freedom of speech.

Critics of compensation culture have voiced concern that the rise in ‘no win no fee’ defamation court cases is curtailing free speech in the media. Personal injury claims along with cases dealing with unfair dismissal and discrimination have also mushroomed in recent years and experts have expressed doubts as to whether the system is operating fairly.

Ministers are now set to review the entire system in a move which could result in the implementation of massive changes.

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“We are aware of concerns that [no win no fee legal proceedings] may not always be operating in the interest of access to justice,” said Justice minister Bridget Prentice. “Now is the time for a comprehensive, objective and evidence-based examination.”

The ‘no win no fee’ conditional fee agreement was originally introduced to the British legal system so that everyone, regardless of their earnings, could have access to the courts.

Updated on 6/26/2008

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