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Sunday, November 17, 2013

No win, no fee


According to the UK Ministry of Justice , the decision was made to give law firms additional time to fully prepare for the upcoming changes .

On the government's plans to reform the system «no win, no fee» Justice Minister Ken Clarke announced in March 2011 . Initially it was assumed that the new rules for these " success fee " will take effect from October 2012.

K.Klark suggested then that attorney fees are not assigned by the losing party , and the amounts are deducted from the compensation due to the prevailing party . This, according to the head of the Ministry of Justice , will make the justice system more balanced and fair to all parties .


At the same time the government was in favor of limiting attorneys' fees - no more than 25% otsuzhennye plaintiff compensation ( previously suggested that the remuneration was 10 % of that amount). The initiative was supported by the Cabinet of Ministers of parliament , but they expressed concern that the implementation of the government's plans may have a negative impact. According to them , the desire to limit the legal costs of the parties will lead to the fact that because of the low fees lawyers will not even take over the case, with the chances of success.



The system «no win, no fee» was introduced in the UK as a result of the reform of the judicial system , held in 1999 . She allowed to work under a contingent fee agreements - «Conditional fee arrangement» (CFA) - British lawyers in civil processes. Together, these instruments appeared and insurance mechanism against adverse outcome of the case - the so -called insurance «After the Event» (ATE). All this has made a real revolution : the system has become very actively used by lawyers and clients.


The initiators of the reform pointed to the fact that she was allowed to make the justice system more accessible to those who can not afford the possibility to pay their own legal costs . In addition, work on such terms is a great incentive for a lawyer , because in this case, his fee does not depend on how much time he spent and the success of the process




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