Legal aid cuts will stop cases like Trafigura, UN official warns

[alp227]

Source: The Guardian

A senior UN official has warned the government that cuts to legal aid and changes to lawyers' fees will prevent claims, such as those in the Trafigura case, being brought against multinational businesses.

Professor John Ruggie, a Harvard University lawyer who is the UN secretary-general's special representative for business and human rights, wrote to the UK justice minister Jonathan Djanogly saying he was concerned about the "disincentives" being introduced.

The letter, sent last month, is a damaging critique of Ministry of Justice plans to cut £350m a year from the legal aid budget and reform conditional fee agreements so claimants would have to use any compensation to pay their lawyers' success fees.

Ken Clarke, the justice secretary, has made clear his desire to reduce "spiralling legal costs" and restrict no win, no fee agreements. A sentencing and legal aid bill is expected to be introduced into the Commons in the coming days.

Read more: http://www.guardian.co.uk/law/2011/jun/16/united-nations-legal-aid-cuts-trafigura

[dipsydoodle]

1. We, in the UK ,

inherited the concept of "no win, no fee" from the US.

The Trafigura case was an extreme example where costs awarded of £105m appear to have been quickly reduced by c. £20m http://www.trafigura.com/our_news/probo_koala_updates/timeline/2010/may/leigh_day__cos_legal_bill_di.aspx

Also in this link see :

And what about the Ivorian claimants? I’ve read that they haven’t received the money paid to Leigh Day & Co by Trafigura.

Trafigura understands that, as of 1st May 2011, many thousands of those entitled to payment from the September 2009 settlement have not been paid.
The company is saddened by this but feels it is a reflection of how Leigh Day & Co has operated from the outset. One can only assume that Leigh Day & Co is vigorously working to get all its clients their £950 entitlement as it is in managing its claims for £105 million in costs.

Trafigura must stress that it paid the settlement sum in full on the day the settlement was agreed in September 2009. Leigh Day & Co has the responsibility for distributing that to its clients. Any specific questions as to the current status of payments can only be answered by Leigh Day & Co.

http://www.trafigura.com/our_news/probo_koala_updates/timeline/2010/may/leigh_day__cos_legal_bill_di.aspx

This is not a defence of Trafigura - simply a link to information. The figure of £950 settlement mentioned is per affected person and is derived from the total penalty divided by the 30,000 affected Ivorians - c. £28.5 millions Assuming the statement that many remain unpaid to be true then something is tragically wrong.

Its the figure of £28.5m damages in context with an original figure of £105m costs which need to be put in context.

[Warrior Dash]

2. Now, if only the US would adopt the UK's policy of "loser pays"