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937 Libel Law<br />

1 DECEMBER 2010<br />

Libel Law<br />

938<br />

had to pay their lawyers’ success fees, and would t<strong>here</strong>fore<br />

take an interest in the costs being incurred on their<br />

behalf. It is clear that if the current situation continues,<br />

and claimants continue to have no interest in the legal<br />

costs of their own lawyer if they win or in those of the<br />

defendant’s lawyer if they lose, the “have a go”<br />

compensation culture can only grow.<br />

As well as consulting on that key proposal for reform<br />

of CFAs, we are seeking views on implementing a<br />

package of Sir Rupert’s recommendations that balances<br />

measures for defendants with measures affecting claimants.<br />

They include introducing qualified one-way cost shifting,<br />

increasing general damages by 10%, strengthening part<br />

36 arrangements, which encourage parties to make and<br />

accept reasonable offers, and allowing damages-based<br />

agreements in civil litigation, otherwise known as<br />

contingency fees. It is hoped that the proposals will<br />

result overall in more proportionate costs in all civil<br />

proceedings including defamation, while enabling those<br />

who need access to justice to obtain it. The consultation<br />

on reform of civil litigation funding and costs closes on<br />

14 February 2011, and in due course the Government<br />

will publish a response setting out the next steps.<br />

I hope that I have reassured my right hon. Friend and<br />

other colleagues that we are taking focused and<br />

proportionate action that takes account of many of the<br />

issues involved. I believe that it is very important to<br />

ensure that the law achieves a fair balance between<br />

freedom of expression and the protection of reputation,<br />

and that steps are taken to bring the cost of proceedings<br />

under control. I thank my right hon. Friend again for<br />

the valuable contribution to the ongoing debate on<br />

these issues that he has made today.<br />

Question put and agreed to.<br />

7.29 pm<br />

House adjourned.

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