The British government intend to reform a no win no fee system became obvious when Ken Clarke, UK Justice Minister, made an announcement on March 13, 2011. Initially, it was assumed that the new success fee rules will take effect from October 2012.
Clark suggested that legal fees should not be covered by the losing party, but deducted from the compensation due to the winning party. According to the head of the Ministry of Justice, the plans aimed at making the justice system more balanced and equally fair for all the parties. At the same time the government was in favor of limiting attorneys’ fees to 25% from compensation in contrast to the earlier proposal for 10 percent of the amount. The government’s proposal was supported by parliamentarians, but the authoritative figures expressed concern that the government’s plans can go too far. According to them, the desire to limit the success fee could lead to the lawyers’ dramatically low interest even in the accident claims doomed for success. Indeed, judging by the tendencies at Solicitors Guru, the largest platform that gathers hundreds of licensed lawyers and agencies in the country, the branch is flourishing, pop in and find a solicitor.
A no win, no fee system was introduced in the UK as a result of the reform of the judicial system, held in 1999. It enabled solicitors to operate within the framework of conditional fee arrangement. With the introduction of this system an ‘After the Event’ insurance mechanism was born. These actions contributed to a real revolution: the system has become extremely actively used by both providers and consumers.
Initially, the government believed that the reforms, carried into effect, will make a solid contribution into more accessible legal services. Additionally, such rules should have become a perfect incentive for a lawyer: thus, the center of gravity shifts to an overall success of the case, not on the time spend to achieve positive results.