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Straw acts on libel fees
Source Ministry of Justice new release
DATELINE: 4/3/10
Jack Straw has taken action to reduce the success fees that lawyers can charge in defamation cases from 100% to 10%. English PEN and Index on Censorship's report on libel law, "Free Speech is Not for Sale" recommended capping base costs and making success fees and After the Event insurance non-recoverable.
The amendment, which was laid by Statutory Order on 3 March and would come into effect from April, will prevent legal costs in defamation cases spiralling out of control and follows the consultation 'Controlling costs in defamation proceedings', which was published by the Ministry of Justice in January this year.
Justice Secretary Jack Straw said:
'Reducing the success fees charged by lawyers in no-win, no-fee defamation cases will help level the playing field so that scientists, journalists and writers can continue to publish articles which are in the public interest without incurring such disproportionate legal bills. This is particularly important for ensuring open scientific exchange and protecting the future of our regional media, who have small budgets but play a large role in our democracy.
'The Statutory Order I am laying reduces the maximum success fee from 100% to 10% rebalancing the system so it is affordable for the press to defend defamation cases, whilst still ensuring access to justice for those who feel they have been defamed.
'This is a swift solution to an immediate problem, a problem which has been recognised by the Science and Technology Committee and the Culture Media and Sport Committee, as well as by Lord Justice Jackson in his wide ranging 'Review of Civil Litigation Costs'.
'Both Lord Justice Jackson's report and the Culture, Media and Sport Committee's reports were thorough and well considered, highlighting the need to reduce the 100% success fees in defamation cases. Their recommendations warrant careful consideration and I will be closely studying their proposals over the coming months.
'In the meantime, the steps I am taking today to reduce the success fee to 10%, should go a long way towards securing the freedom of scientific exchange and our tradition of investigative journalism, which are so fundamental to the protection of our democracy in this country.'Also published on 3 March were the responses to the consultation, which indicate support for the proposal to reduce defamation success fees to 10%. A wide range of stakeholders responded to the consultation, including legal professionals and their representative organisations, members of the judiciary, media organisations and legal insurance groups. More than half (53%) supported the proposal to reduce the maximum CFA success fee in defamation cases to 10%.
This is the latest step in the Ministry of Justice's programme of work to review the law of libel and to ensure reasonable and proportionate costs in defamation proceedings:
• The government announced a package of measures on 1 October 2009 as the first step for dealing with concerns over high costs in defamation proceedings, including ensuring that, where 'After the Event' insurance is taken out, defendants are notified as early as possible, and given the opportunity to reach a settlement without being liable for the insurance premiums.
• Defamation proceedings are now part of a mandatory costs budgeting pilot, with Judges scrutinising costs as cases progress to ensure that they are proportionate and within the agreed budget.
• A consultation on libel on the internet was published in September 2009, seeking views on the multiple publication rule and time limits in defamation cases. Responses to that consultation are now being considered.
• The government has also established a working group to consider whether the law of libel, including the law relating to libel tourism, in England and Wales needs reform, and if so to make recommendations as to solutions. The working group has already met three times and is expected to report its initial findings to Ministers in March.
• The government is actively considering the issues raised by the use of super-injunctions. Officials have met with press representatives and we are engaging with the judiciary on the matter.Last modified: Thursday, March 4, 2010
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Previous stories
Government Policy
Government announcement on Television Product Placement
Libel laws group announced
Alastair Campbell's 'unprecedented' role in preparing dossier on Iraq's weapons of mass destruction
CPBF submission to DCMS consultation on product placement on television
Action on product placement
Scottish parliament inquiry into local newspaper decline
Straw to look at libel law reform
Response to Digital Britain
Simon will look at safeguards on product placement
Campaign opposes U-turn on product placement
Government to reverse policy on TV product placement
Damian McBride and the reality behind Labour smears
Little comfort for journalists in Digital Britain
"I will abide by civil service neutrality" says Downing Street's new spin supremo.
Speaker's call for an end to ministerial leaks: Downing Street's new media chief could play a role
Photographers snap into action over new law
Audiovisual Media Services Directive in the UK
Televised briefings are the way forward
Media gagged in the case of Daniel James
Does convergence matter?
Civil servant faces official secrets trial
New Threat to Media Freedom
Blair's farewell: No politician can live by spin alone
Government response to Public Voice Petition on Digital Dividend
New Media services should not be regulated like TV, says Lords Committee
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