A debt collection agency has launched an alternative business structure promising to offer “genuine” conditional fee deals in an industry where it accused solicitors of being unwilling in reality to take the rough with the smooth.
The Legal Ombudsman (LeO) has fought off the first judicial review to reach court, brought by a former solicitor unhappy that it had ordered his bill to be slashed. The case, involving a CFA, comes as LeO issues a report outlining problems caused by ‘no win, no fee’ deals.
Third-party litigation funders thinking of investing in law firms to avoid liability for adverse costs will have to try their luck in front of the court after an important report on contingency fees refused to make a recommendation on whether this should be possible.
Many of the regulations underpinning the regulatory regime for legal services – including those designating the Solicitors Regulation Authority and Council for Licensed Conveyancers as ABS licensing authorities – are under the microscope as part of the government’s Red Tape Challenge, it has emerged.
Liverpool costs specialists yesterday claimed a “massive breakthrough” in a dispute about the recovery of ATE insurance in RTA portal cases that has seen thousands of cases stayed. The news came as the government announced a two-year moratorium on ending recoverability in insolvency cases.
Alternative business structures may well herald the demise of hourly billing as legal practice becomes even more competitive, the Master of the Rolls has predicted. Contingency fees and price comparision websites will also play a role.
The government as expected overturned all of the House of Lords amendments to the Legal Aid, Sentencing and Punishment of Offenders Bill last night, with justice minister Jonathan Djanogly saying the Jackson reforms would put an end to the “racket” that has allowed “inflated profits” for law firms.
The government suffered two more defeats during yesterday’s final House of Lords stage of the Legal Aid, Sentencing and Punishment of Offenders Bill, and also tightened up the ban on referral fees.
A government bid to give the key element of the Jackson reforms retrospective effect was today branded “patently unfair” by costs experts and likely to encourage defendants to start stringing out cases.
Worries about the cost of going to court are preventing small and medium-sized businesses from enforcing their legal rights, yet many remain unaware that commercial disputes can be funded through conditional fee agreements, new research has shown.