No Win No problem free?

The government has drawn up plans to reduce the "compensation culture". An increase in the amount of damages awarded at all levels of 10% will be compensated for the loss of "success fee" that does not make any lawyers fees pocketed before. Justice Secretary, Ken Clarke, will implement the recommendations of the Jackson report by increasing the amount of damages awarded overall 10% to compensate for the loss of a fee.

Although there is no win no fee unless an accident case claim legal costs today in England and Wales have increased in recent years. The Jackson report suggested that unscrupulous lawyers were encouraged to pursue frivolous claims as payment of property taxes on the success of the defendant. Costs, particularly in cases of compensation for medical negligence, can climb quickly. In 2008-2009, the NHS paid £ 312 000 000 in damages, but coughed up anextra 456 million pounds in payments to cover legal fees. That said Clarke, is not what the NHS should spend its money. The truth is that the accounts of medical neglect for only a very small proportion of all claims.

Road traffic accident claims account for almost 75% of all cases without earning any compensation costs and a year ago the government introduced an accelerated procedure, the system of fixed costs to mitigate the damages and costs in these cases. So, if the reason is cost, which has already been addressed. The loss of "success fee" is designed to make legal fees reasonable enough not to deter anyone, but loud enough for the court system is seen as a last resort. It is not known whether successful applicants will only 75% of damages or whether they will be required to pay anything before. If so, many people may be deterred from seeking legal recompense for any personal injury, whatever the merits of their case.

government crackdown on "no win no fee" invites companies to alert Liverpool Law Society

The professional organization that represents the top law firms in Liverpool expressed concern about government proposals to complete the reform of the most profound civil justice system in 15 years.

The reforms outlined by the Justice Secretary Kenneth Clarke include reducing the activities of "no win no fee" companies by preventing unnecessary and costly litigation.

Mr Clarke said that in future it would not be possible for applicants to apply for compensation to recover all their legal costs if their claim is settled.

The changes apply even in cases that are forced into court by insurance companies that originally refused to pay.

The Government justified the plans saying the claims and a justice system heavy costing businesses millions of pounds every year.

Stewart McCulloch, a spokesman for the Liverpool Law Society, said: "There are many changes announced, but all lead to the same consequences that are difficult - the inability of the public to recover their legal costs in full.

"Indeed, people may not be properly represented, for example, requests for serious injuries.

"Additional payments to lawyers, called success fees, will now be taken out of compensation for claimants. These charges were originally introduced by the government to ensure that lawyers can provide service to all members of the public whatever their financial situation after legal aid was abolished for most legal cases. "

Mr. McCulloch, who is also a specialist to reimburse legal fees, added: "There is no public benefit or public money in implementing these measures.

"It is shocking to think that people whose lives are seriously affected by workplace accidents will have some of the money that is supposed to provide for them in the future to pay off legal fees that have often been committed by 'intransigent attitude of their opponents. "

But the proposals were welcomed by the insurers point of view.

Rob Williams, chief of staff costs at headquarters Weightman Liverpool law firm, said: "Consultation is a bold plan to transform a sick system and update it by using technology, increasing mediation and streamlining processes that ensure that the majority of cases are successfully treated. "