Lord Judge, the Lord Chief Justice has announced that damages awarded in PI, nuisance and defamation cases will rise by 10% from next year. “We take this opportunity to declare that, with effect from 1 April 2013, the proper level of general damages for pain, suffering and loss of amenity in respect of personal injury, nuisance, defamation and all other torts which cause suffering, inconvenience or distress to individuals, will be 10% higher than previously,” said Lord Judge.
Under the old CFA system, lawyers were able to recover a “success fee” double their normal charges from the loser in a civil claim. But the recently passed Legal Aid, Sentencing and Punishment of Offenders Act 2012 changed the funding of cases so that the winners now have to pay the success fee out of their damages award. In addition, the fee will be capped at 25% rather than 100% of usual rates.