Tuesday, 21 June 2011
LOTS OF LEGAL AID CHANGES ANNOUNCED TODAY
Will review in detail at some later date -
The one which immediately struck me was this one:
Having considered the responses to the consultation questions on
alternative sources of funding, the Government has decided to introduce
a Supplementary Legal Aid Scheme, under which 25% of all damages
successfully claimed, other than damages for future care and loss, in
cases funded by legal aid will be recovered by the legal aid fund. This will
include cases funded through the exceptional funding mechanism.
So in essence the Legal Aid position will mirror the new Contingent Fee position (which was announced in March when HMG accepted Jackson LJ's proposals) - whereby instead of the Defendant paying the lawyers, then the lawyers will be paid out of damages - in both cases fixed at 25% - with a 10% rise in general damages to compensate.
So both Contingent fee funded and legally aided lawyers will have a vested interest in increasing the level of damages because damages will now equal profit for lawyers. How far we have fallen.......