LEIG key developments

Legal Expenses Insurance Group

News Release: 18 February 2010

LEIG expresses concerns at the consultation process used for the Ministry of Justice Consultation paper CP1/2010 – “Controlling costs in defamation proceedings”. The MoJ issued this consultation paper in January and gave just 4 weeks for responses.

Tony Baker, LEIG Director, commented:

“The LEIG is very concerned by the arbitrary reduction in the response time to four weeks as opposed to the usual 12 weeks. This is especially true when no explanation is given and there is no apparent need. A shortened timetable suggests there is little interest in opposition or alternative views.”

LEIG has also concerns at some of the data that was presented and a lack of evidence to support the contention that CFAs and ATE insurance encourage more speculative claims to be pursued. Indeed entirely the opposite is true. Solicitors and ATE insurers are only prepared to support cases that they consider have real merit.

Tony Baker added:

“Access to justice will be prejudiced. The consultation seems flawed in that the “Impact Assessment” does not adequately address the concerns of the main group that will be affected by these proposals, i.e. genuine claimants seeking redress.

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