U.K. to Reform No-Win No-Fee as Brake to ‘Compensation Culture’

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The U.K. will change how lawyers are paid in “no-win no-fee” court cases to stop spiraling legal costs from harming the legal system, Justice Secretary Kenneth Clarke announced today.

“Success fees” will be paid out of damages awarded to claimants -- with a cap of 25 percent -- rather than by defendants who are currently liable for as much as 100 percent of the winning lawyer’s base costs on top of their usual fee, the Ministry of Justice said. The reforms will also see a 10 percent increase in general damages.