The Access to Justice Act 1999

The introduction of the Access to Justice Act 1999 in April could lead to a situation where insurers are funding the claimant to take court action against themselves.

The replacement of legal aid with "no win, no fee" arrangements and the possibility for the successful party to reclaim their premium costs, which is included in the Act, is likely to encourage many claimant solicitors to insure against losing the case.

Many insurers have already introduced after-the-event insurance which will protect claimants and their solicitors in the event of an unsuccessful action. Solicitors are also within their rights to claim the cost of the premium from their client - a situation which will be exasperated when successful solicitors can claim up to 100% above their fees.

The new regulations have been introduced to add extra bite to the Woolf Reforms, which have impacted most on claims under £15 000 where the courts have restricted lawyers' and experts' fees.

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