Coming this April – 10% Cap on Success Fees for Publication Case CFAs
“Well Andy, the empire strikes back!”
This is how the the Legal Director of a major media group greeted me recently and this was what he was referring to.
Critics say the timing is an attempt by the Labour government to soften the newspaper publishers’ attitude to them during this pre-election period. Naive though it might be to ignore short-term political motives, this clampdown has been coming for a while and to those of us at the sharp end of costs in publication cases it signals the end of an extended term of one-way traffic. Ten years of the unfettered recovery of success fees and ATE premiums and finally a hint of access to justice for defendants.
Carter-Ruck (for they are the most prominent CFA claimant factory in publication cases) should be wary of blaming the media lobby for this overdue clipping of their wings. I am reminded of the old adage; whenever you point your finger, three point back at you. The hat trick of own goals I believe they have scored are;
- Frequently overstating risk in their CFAs
- Uplifting fees that are already based on lavish base rates and eye-watering claims for time spent.
- Using the encouragement given by the courts to stepped success fees to ramp up to 100% too early in proceedings.
The next unpleasant dose of reality to arrive at St Andrew Street is likely to be costs management as it evolves through the pilot scheme and presents an important opportunity to keep a grip on the stable door of base costs before that shire horse has bolted completely.
Posted via web from costs2