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Clarke unveils litigation and dispute resolution reforms

The first major overhaul of litigation and dispute resolution in 15 years has been announced by the justice secretary Kenneth Clarke.
Among the reforms to the civil justice system, the small claims limit will be raised from £5,000 to £15,000 and county court jurisdiction will be changed so the High Court is used for larger and more complex claims only.
The government also wants to abolish recoverability of success fees and associated costs in no win no fee arrangements.
A new online tool will be expanded to reduce waiting times and legal expenses.
In addition, Mr Clarke said the reforms will improve the way court judgments are enforced and increase the use of mediation services.
He explained: "Most people dread going to court because of all the cost and anxiety it involves. We must change that by helping them to avoid court where possible and cutting costs where that is unavoidable."
Previously, the Ministry of Justice has indicated it wants separating couples contesting a divorce settlement to be made to use mediation services.
Rick Munro, dispute resolution partner at Lamport Bassitt, said: "In recent years, no win no fee agreements have become commonplace, where a solicitor takes on a case for a party who could not otherwise afford the legal costs involved. Some cases are won, some are lost. In no win no fee agreements, a success fee is paid to the winner's solicitor. This helps to fund the cost of cases that are lost, and provides access to justice for those people who would not otherwise be able to afford to deal with a claim. At present, the success fee is paid by the loser. Under the changes, the success fee will have to be paid by the winner. He continued: "A loser in a court claim generally has to pay the winning side's costs. It's not known until the judge makes his decision who is going to win. An insurance policy can be taken out before court proceedings start to insure against the risk of having to pay the winning side's costs on losing. At present, the cost of a winner's insurance policy generally has to be paid by the loser. Under the changes, if you win your claim you won't be able to recover the cost of the insurance policy from the loser. "If you have a claim but would want to be represented on a no win no fee basis you should act now because the changes will mean that if you win, you will have less in your pocket at the end, despite winning."
Posted by Alex McLean
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