Consultation launched on regulation of ‘no win, no fee’ civil litigation agreements

Consultation launched on regulation of 'no win, no fee' civil litigation agreements

Views are being sought on the regulation of success fee agreements – which are ‘no win, no fee’ or ‘no win, lower fee’ – to safeguard the interests of people considering civil legal action.

In May, the Scottish Parliament passed the Civil Litigation (Expenses and Group Proceedings) (Scotland) Bill, which aims to increase access to justice by creating a more accessible, affordable and equitable civil justice system.

The legislation includes provisions to make the costs of court action more predictable, increase the funding options for pursuers of civil actions, and introduce a greater level of equality to the funding relationship between pursuers and defenders in personal injury actions.

Part 1 of the 2018 act relates to success fee agreements which will be the main method of extending funding options to potential litigants.

For personal injury claimants these will be simple to understand “no win, no fee” agreements.

The consultation relates to the detailed regulation of such agreements, including the appropriate caps on success fees to make the costs of litigation more predictable.

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