The Government has decided that the exemption afforded to IP’s in relation to no win no fee agreements will be removed in April 2016.
It is expected that this time the government is less likely to back down, particularly given the pressure from Lord Justice Jackson himself.
The removal of this exemption will mean that the uplift cost of CFA agreements and ATE insurance premiums will have to be met out of the judgment sum and cannot be rolled into higher costs awards as is currently the case. This puts pressure on IP’s to find a more cost effective way of dealing with claims as these additional trial costs will eat into any judgment sum awarded.
The ability of Insolvency Practitioners assign claims and the emergence of speciality litigation purchasers like Cavendish IP Solutions means that IP’s have another way of dealing with these claims with the advantages that time spent on cases can be reduced and money can be brought into the estate up front.
R3 the trade body for insolvency practitioners has responded to this announcement and their statement can be found here.
Cavendish IP Solutions Limited is incorporated and registered in England and Wales with company number 09439024 whose registered office is at 7 Cavendish Square, London W1G 0PE. Cavendish IP Solutions. This post does not constitute legal advice.