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CHAPTER 5

THE BROADER CONTEXT

5.1 This chapter develops the discussion in chapter 1. It is concerned with the civil justice system as a whole and whether, taking account of the proposed reforms, it provides the right signals to ensure that problems are dealt with in the appropriate place and as efficiently as possible.
5.2 In a system that was efficiently managed and gave all the right signals, people would know and understand the costs, risks and benefits associated with various possible courses of action. They would be able to make informed decisions about the time, money and effort that it was worth devoting to resolving a dispute. As a result, demand and supply in all parts of the system would naturally find an appropriate and efficient level.
5.3 One factor that could prevent the development of the system in this direction is an over-optimistic view of the resources that the public sector is likely to provide. Pressure on public expenditure is intense. If alternative ways of increasing resources receive insufficient attention, parts of the civil justice system may be starved of resources. I therefore discuss below the issues of court fees and private forms of funding legal services.
5.4 This analysis suggests several areas on which future policy might focus. Work on some is already in hand or planned, but others are new.

The law

5.5 The Government seeks to ensure that the law itself is as clear and accessible as possible, so that people can more readily find out and understand what their rights and obligations under it are.
5.6 There are, however, a number of areas where I believe we should take a step back and ask whether the civil justice system can produce the results that society expects - such as providing appropriate compensation and deterring negligent behaviour. Or whether an alternative approach would be more effective - criminal sanctions, self-regulation, strict liability for damage caused backed by insurance, or no-fault compensation.
5.7 I am particularly concerned with those areas where judgements have to be made about whether someone has taken reasonable care or has acted negligently in all the relevant circumstances of a case. Making judgements of this kind involves difficult issues about the risk and predictability of harm, and the degree of risk that an individual should be expected to bear. These judgements have little to do with the severity of the event. Harsh consequences can result from small risks.
5.8 I would urge that we should take one of these areas and conduct a thorough enquiry to see if we can do better. The area I suggest is medical negligence. I make this suggestion for three reasons.
5.9 First, the subject matter is inherently difficult to deal with via the legal process. It is difficult - one might say impossible - to draw a clear line between misfortune and negligence. Even if one could, it is difficult to accept that those just one side of the line should receive large sums in compensation and those the other side should receive nothing. Medicine is shrouded with considerations of privacy which seem to breed excessive secrecy - a tendency enhanced by the ever-present fear of legal proceedings. And the scientific evidence is so obscure over large parts of the field - and the gap between cause and effect so long in some instances - that precedents and judgements need to be flexible.
5.10 Second, there is a risk that the present approach increases the costs of medical care through the adoption of otherwise unnecessary procedures to protect against the risk of civil suits.
5.11 Third, the bulk of the resources deployed to deal with medical negligence are from the public sector - the health and legal aid budgets. It makes very little sense to have an increasing amount of time and money from the health budget extracted in legal fees rather than patient care, and to engage in a set of arrangements where legal professionals can earn more from public funds than health professionals.

The civil justice system as a whole

5.12 I argued in chapter 1 that the civil justice system goes much wider than the courts, to include advice agencies, tribunals, and ombudsman schemes, as well as forms of alternative dispute resolution (ADR). The system is fragmented and poorly mapped. Most notably in the case of tribunals, many separate bodies are responsible for managing different parts of the system. Within central Government, responsibility for the related policy issues is often either unclear (ombudsmen) or split between several departments (tribunals and to some extent advice agencies). Roles and responsibilities need to be rationalised so that the system is managed in a cohesive way. I recommend that the Government should consider bringing responsibility for policy in respect of all aspects of civil justice under a single roof. The main changes that this is likely to involve in practice are:

  • re-emphasising the Lord Chancellor's Department's (LCD's) over-arching policy responsibility for the nature, scope and functions of tribunals, and possibly transferring the administration of more tribunals to the Court Service;

  • giving LCD a similar role in respect of policy issues relating to ombudsman schemes; and

  • transferring responsibility for sponsoring and funding bodies such as the National Association of Citizens' Advice Bureaux to LCD, and giving the department the new role of co-ordinating Government policy towards the advice sector.

5.13 Meanwhile, a major priority for LCD should be to improve the quality of the management information that is available about the civil justice system, and the development of an IT strategy to deploy it. Lack of information is the biggest single obstacle to developing civil justice to meet changing circumstances.
5.14 In terms of services, particular importance should be attached to the provision of basic information to the public about:

  • what their legal rights and obligations are(1);

  • the legal system generally; and

  • the various services available to help resolve disputes and the advantages and disadvantages of each.

5.15 The Government should continue to encourage and facilitate the development of all forms of ADR. In saying this, I am not asserting that ADR is necessarily better or more cost-effective than litigation. I am anxious that it should not just become an additional element of cost, particularly where it is recommended by the court. But ADR increases the range of options to settle disputes, and the Government should seek to remove obstacles to its development generally, as well as funding ADR in appropriate cases through legal aid. If ADR became more widespread, it would also help to increase competition in the market for legal services generally - a theme to which I return below.
5.16 Consideration should also be given to whether there is a role for an independent advisory body to promote and co-ordinate the development of ADR at a national level, and to address common issues such as standards and accreditation.

Public interest cases

5.17 Paragraph 1.3 explained that I have taken the resolution of private disputes to be the primary role of the civil justice system. Many of my conclusions reflect this emphasis. However, there is likely to be a small number of cases for which these conclusions are not sufficient. I have in mind cases that are relatively complex and expensive compared to the immediate benefits involved, so that an individual party would rarely choose to pursue them, but where a clear and specific wider benefit, such as an important precedent, is likely to be produced.
5.18 Under the existing civil justice proposals, I would expect test cases of this sort to be heard on the multi track. But the nature and significance of these cases is very different from those that are on the multi track because they simply involve a large amount of money. This has led me to wonder whether, in the longer term, a fourth track would be appropriate for test cases. Or alternatively whether the multi track should eventually be reserved for test cases, and the fast track approach extended and adapted to cover other large cases. Either way, there may also be a case for saying that in cases involving novel and complex points of law, litigants should not generally be permitted to represent themselves (see also endnote 8, paragraph 2.47).
5.19 The criteria that would justify the taxpayer subsidising the cost of court and legal services in these cases are also different - especially if litigants cannot represent themselves. I am therefore attracted by the idea that there should be a separate system for funding cases that met a clearly defined public interest test(2). Such a fund might be managed by the Legal Aid Board, but should be kept clearly distinct from legal aid itself, i.e. the system for supporting the cases of less well-off people generally.

Court services

Funding
5.20 In 1996-97, the total cost of the civil courts was £325 million. Income from fees and other receipts was £268 million or 82% of the cost. Fee remissions and exemptions were worth over £8 million. So if court fees had been payable in every case, £276 million or about 85% of the cost would have been recouped. In other words, the average level at which fees are set leaves some £49 million to be found by the taxpayer. Furthermore, the legal aid scheme spent an estimated £50 million on court fees - the largest single component of a total subsidy from the taxpayer of about £107 million (33%).
5.21 One of the most important signals in any system is price. If prices do not fully reflect costs, it is not possible for users to make sound choices about the appropriate way to pursue their problem. I therefore consider it important that the Government should achieve its stated policy of setting court fees at a level that reflects the cost of the services provided by the civil courts.
5.22 There is no justification for setting fees generally at levels that do not reflect cost, so that litigants benefit equally regardless of means. Any subsidy that the taxpayer does provide should be explicit and targeted on those who could not otherwise afford access to the courts. I would increase fees to reflect the full cost of the courts, and add a sum equal to the additional fee-income generated to the legal aid budget.
5.23 Legal aid is the best mechanism for ensuring that public funds are targeted on those who most need help. In future, a more flexible legal aid system could subsidise the cost of court fees in cases where it was not appropriate to meet the cost of legal representation (see paragraph 3.6). It could then replace the existing system of fee remissions and automatic exemptions. The new approach would be more transparent, easier to administer, and subject to an appropriate merits test. It would also mean that the fees paid by legal aid in successful cases could be recovered from the opponent.
5.24 It is equally important that individual fees should reflect the cost of the particular processes to which they relate. At present, there is a substantial degree of cross-subsidy both between different areas of court business and between different stages of cases - most fees are paid when cases are issued, but a high proportion of the cost relates to trials. Consequently, the finances of the courts are vulnerable to changes in the volume or pattern of their workload. The Lord Chancellor intends to issue a consultation paper about the future structure of fees in the autumn. I hope that one of his objectives will be to eliminate cross-subsidy between different areas of business and substantially to reduce the degree of cross- subsidy between stages.
5.25 This overall approach to court fees offers one further advantage. The civil courts would effectively be self-funding. Their income would reflect the demand for their services, and they would be in a stronger position to manage their costs to reflect that income. This would make it possible to consider giving the Court Service greater freedom to manage its own resources. The way to do this would be to set up a trading fund for the civil courts. This would free them in large measure from public expenditure constraints.

Accommodation

5.26 The civil justice reforms are concerned with efficient court procedures. The other major area where I believe there to be substantial scope for improving efficiency is accommodation. The physical estate of the existing court system seems to be severely under-utilised; at the same time, the courts themselves are poorly equipped. There are currently nearly 250 county courts, many of them very small. The cost of maintaining this infrastructure is substantial. The problem is not just the cost of the buildings. More staff are required to keep these small units running than would be needed if the work was concentrated in fewer places, and that in turn generates a higher management overhead. The overall result is that a remarkably high proportion of the cost of the civil courts is effectively fixed, making it difficult to manage the system flexibly or respond to changes in workload.
5.27 The majority of cases do not require a trial. Going to court is usually a once- in-a-lifetime experience. I see no reason why people should not generally be expected to travel some distance if they have to do so(3). I therefore recommend that the Court Service should be required to draw up a plan to reduce substantially the number of civil courts, perhaps to about the number of Crown Court centres. I return to the question of the services that ought to be available at a more local level in paragraphs 5.29-30.

Tribunals

5.28 Tribunals are essentially courts with a specialised jurisdiction (see paragraph C.10). They were originally intended to operate procedures that were relatively simple and non-legalistic. But in many tribunals the rules, procedures and practices are virtually indistinguishable from those found in the higher courts. I believe that the time is now right for a comprehensive programme of reviews of the various major tribunals. Taking account of their different business requirements, these should consider how far the procedures of each tribunal could be simplified, and whether some tribunals should charge fees or introduce a cost-shifting rule (see paragraphs 5.20-25 and 5.45).

Legal services

A Community Legal Service
5.29 Chapter 3 considered the existing set of proposals for reforming the legal aid system. However, the Government is also committed to the establishment of a Community Legal Service. The election manifesto said, "A community legal service will develop local, regional and national plans for the development of legal aid according to the needs and priorities of regions and areas. The key to success will be to promote a partnership between the voluntary sector, the legal profession and the Legal Aid Board." My terms of reference ask me to consider how far relevant aspects of the reform programmes might be developed to lay the foundations for a Community Legal Service.
5.30 I have not, in the time available, been able to consider this idea in the depth it deserves. But the essential features of a Community Legal Service are that it:

  • responds to local needs and circumstances; and

  • is more flexible than traditional legal aid.

I would see it as part of a deliberate shift away from expensive court-based litigation services towards a much greater emphasis on information services, non- lawyer advice and assistance, and alternative dispute resolution.
5.31 The current legal aid proposals are already pointing in the right direction. Subject to some re-focusing, I believe that the foundations for a Community Legal Service are implicit in the existing programme of reform. The Legal Aid Board should therefore be charged with adapting its plans and managing the change to a Community Legal Service (see paragraph 4.22).
5.32 The starting-point will be the establishment of the new Regional Legal Services Committees. The role envisaged for them is central to the creation of a more locally-responsive service. Briefly, that role will be:

  • to gather information and views in order to assess local needs and priorities in the legal aid field;

  • to act as a mechanism for partnership between the various bodies involved in providing legal services;

  • to gather information about the availability and spread of different types of legal service in an area, and to promote the development locally of new services such as ADR(4); and

  • to advise the Board, when it lets contracts for legally-aided services, on the optimum balance between geographic access, choice and value for money (see paragraph 3.35).

5.33 In the longer term, I would see the centrepiece of the Community Legal Service as a network of small local offices, providing basic information and diagnostic advice. These offices might be co-located with advice agencies or based on the premises of county or magistrates' courts, council offices or libraries. They would advise people with a potential legal problem about alternative ways of dealing with it and the services - both private and legally-aided - that could help. I do not see this information service as being restricted by a means test to those who are eligible for legal aid.
5.34 I argued in paragraph 3.21 that an element of service provision by directly employed staff can provide a useful benchmark. The information service described above might be a good place to try out this option first.
5.35 I see the establishment of genuinely local information services, combined with the greater emphasis on advice and assistance, as a counterpoint to the reduced emphasis on litigation and courts. It is important that these two developments are co-ordinated. In future, it is likely that there will be fewer firms contracted to provide legally-aided litigation services and fewer county courts (see paragraph 5.27). In so far as these are both currently significant sources of basic practical information, it is important that something should replace them. More specifically, the network of Community Legal Service offices could be linked electronically with the court system. While it is reasonable to expect people to travel some distance if they are involved in a trial, the same is not true for procedural or interlocutory hearings, which may be very short. The answer must lie in information and communications technology.
5.36 As I have said, all this is implicit in existing plans. But there will also need to be some changes of emphasis. I wish to draw attention to two issues:

  • the degree of local autonomy;

  • the system for determining the merits of applications for support in a substantial case (i.e. beyond initial advice and basic assistance).

5.37 The existing proposals place considerable emphasis on national priorities and the sub-delegation of central budgets to the regions according to a formula. The aim is to ensure that the level of service available is broadly consistent across the country as a whole. That is a reasonable objective. But it leaves only marginal scope to adjust the allocation of resources to reflect local priorities. The concept of a Community Legal Service implies a larger element of local decision-making. And so less consistency. The Government will need to decide how far down that road it wishes to go.
5.38 Second, the existing proposals assume that responsibility for assessing the merits of cases will gradually be delegated from the Legal Aid Board to the contracted providers themselves. I have already expressed some concern about this (see paragraph 3.32), arguing that the Legal Aid Board should for the time being retain responsibility for conducting the merits test. The drawback is that this involves an application on paper to a remote office, which takes time and means that the person conducting the test has no direct knowledge of the case or contact with the applicant.
5.39 The network described in paragraph 5.33 might provide a better basis for organising the assessment of merits and possibly also means. These offices would be able to conduct the tests in the course of giving face-to-face diagnostic advice. They would then be able to refer the successful applicant to an appropriate service provider (or offer them a choice of contracted providers). But they would not themselves provide the further services, and so would not have a financial interest in the outcome of the application.

The market for legal services

5.40 The concept of a Community Legal Service goes wider than helping those in the community who need direct financial support from the taxpayer. This section therefore discusses the market for legal services. It is important to ensure that this market operates effectively, so that people who do not qualify for legal aid are able to obtain the legal services they need at competitive prices. And of course the legal aid scheme has to buy its services in that wider market.
5.41 There seem to be two main defects with the market at present:

  • It is subject to a complex patchwork of regulations. Like all regulation, the intention is to protect the consumers. But the effect is as likely to be to protect the interests of providers and to prevent competition and innovation.

  • There is a marked imbalance in the knowledge and information available to individual one-off purchasers and professional providers. This makes it difficult for people to seek the most appropriate service and the best value for money.

5.42 I would therefore seek to remove restrictions on the way that lawyers can charge for their services. Any that remain should be subject to a tough national interest test. This would help to stimulate a more competitive market, widen access to justice generally and, in some cases, offer an alternative to publicly- funded legal aid. I discuss some of the options in more detail below.
5.43 I would also seek to ensure, through the Community Legal Service, that information is made readily available about the legal services available in a locality and what they might cost. Further, building on Lord Woolf's recommendations 59 and 60, I would require solicitors to make written agreements with their clients at the start of every case, setting out what the price of the case (or perhaps for each stage of the case) will be, the circumstances in which the price(s) might need to be varied, how such variations would be calculated, and the prospects of success. I have already argued that in fast track cases solicitors should agree a fixed price, and that those prices should be published (see paragraph 2.45).
5.44 The above proposals should go some way to redress the imbalance between one-off purchasers and professional providers. Organisations that buy legal services in bulk are in a much stronger position, and legal aid is the biggest bulk purchaser of all. Future developments in legal aid, therefore, should be planned with an eye to their likely impact on the wider market. Specifically,

  • the Legal Aid Board's quality assurance system could be developed as a more general kite mark. The Community Legal Service could publish information about franchised firms so that consumers would know that they operated robust office systems and were considered competent in certain fields. This might in turn help to stimulate the wider development of quality assurance and accreditation schemes by the legal profession itself.

  • I have already said that legal aid contracts should avoid hourly rates in most cases in favour of fixed prices and arrangements that make the provider take a share of the risk ( paragraph 3.19). As well as obtaining better value for money for legal aid, I hope that this would help to accustom lawyers to devising alternative ways of charging for their services, which they could offer more widely.

5.45 Any consideration of the market for litigation services is complicated by the rule that costs generally follow the event. This inevitably requires a regulatory system - currently taxation by the courts - to determine an appropriate amount for the unsuccessful party to pay in respect of his or her opponent's costs. But so long as that system depends on an after-the-event assessment at an hourly rate decided by the court, the scope for competition and more efficient price structures to develop is severely limited. I recommend that the costs rule itself and the mechanisms for determining costs awards should be reviewed to see if they can be made to fit better with fixed prices and other forms of remuneration that are not based on hourly rates. I would also want to consider whether the rule should be introduced in some tribunals (see paragraph 5.28).

Alternatives to legal aid

Conditional Fees
5.46 Since 1995, solicitors and their clients have been allowed to make conditional fee agreements in limited areas of work(5). Although the results of the research into this experiment have not yet been published, there seems to be a widespread consensus that conditional fees have worked well and achieved their primary purpose of improving access to justice for those who do not qualify for legal aid. It seems to me that the value of conditional fee agreements has now been sufficiently well established. Their scope should therefore be widened to embrace all civil proceedings (although in practice, of course, they are mainly relevant where a money claim is involved).
5.47 I argued in paragraph 5.3 that an over-reliance on public funding may act as a constraint on the resources devoted to civil justice. It follows that I do not believe that legal aid should be available for cases that could be pursued satisfactorily under some form of private funding, such as a conditional fee agreement. The existing law prevents the Legal Aid Board from taking account of the possibility of a conditional fee agreement when considering applications for legal aid. I understand why this was thought appropriate during the initial experiment, but I believe that the time is now right to remove this restriction.
5.48 One approach would be simply to remove those areas of work for which conditional fee agreements are most suitable (e.g. most personal injury work) from the scope of the legal aid scheme. In practice, however, it would prove difficult to define the appropriate categories, and within any definition there could conceivably be cases that ought to be pursued but whose individual circumstances made them unsuitable for a conditional fee. My preferred approach, therefore, would be to allow the Legal Aid Board to consider, as part of the merits test for granting legal aid, whether a case was suitable for funding by some form of private arrangement. This would be consistent with the existing approach in cases where people have access to alternative sources of support such as a Trade Union.
5.49 Conditional fees have the great advantage that some of the risk is taken by those who assess it. This is likely cause advisors to concentrate on the quality of their judgement of the outcome. So I believe that conditional fees should take precedence over legal aid wherever practicable. In future, I would expect most monetary claims, including the vast majority of those suitable for the fast track, to be funded privately rather than by legal aid. And I see no difficulty in moving from legal aid to conditional fees or vice versa if the changing nature of a case justifies it.

Contingency fees
5.50 I also think that the time is now ripe to reconsider whether contingency fees - where the fee is a proportion of the amount recovered rather than an uplift to the normal bill - should also be permitted. There is no essential difference in principle between conditional and contingency fees. Indeed, in some ways the latter may be preferable. Contingency fees create an incentive to achieve the best possible result for the client, not just a simple win. And they reward a cost-effective approach in a way that conditional fees, where the lawyers' remuneration is still based on an hourly bill, do not. Opponents of contingency fees usually cite the experience of them in the United States of America. However, considering the differences between the two jurisdictions - notably the cost-shifting rule and the fact that juries here do not generally set damages - we should re-assess whether those concerns may be misplaced.

Legal expenses insurance
5.51 Legal expenses insurance is potentially a valuable means of widening access to justice. Although free-standing policies have not proved successful, legal expenses insurance, in the form of cheap but limited add-on policies to car or house insurance, is probably more widespread in this country than is generally believed(6).
5.52 Two factors seem to limit the wider growth of this market. One is that most people do not expect to become involved in litigation and therefore do not see the need for this type of insurance. That is essentially a marketing problem for the insurers. The other is the high and uncertain cost of litigation discussed in this report. I would not favour the tax breaks that are sometimes proposed to stimulate demand. I would, however, favour removing any unnecessary restrictions(7).
5.53 As large-scale purchasers of legal services, insurers should be able to use techniques such as fixed price contracts to put downward pressure on costs, in much the same way that it is proposed the Legal Aid Board should. It is also conceivable that the Board might wish to operate in partnership with one or more insurance companies, jointly contracting to purchase legal services on behalf of legally-aided people and policy holders respectively.

A Contingency Legal Aid Fund
5.54 Another idea that has been put to me is that of a Contingency Legal Aid Fund. This would work much as legal aid does at the moment, but with the additional element that successful litigants supported by the fund would pay a surcharge out of their damages. Depending on the success rate of the cases applying to and accepted by the scheme, and on the amount of the surcharge, such a fund could become self-financing.
5.55 This is a different approach to managing the risks inherent in litigation. The essence of a CLAF is that the cost of unsuccessful cases is spread between successful litigants. Under the present legal aid scheme, on the other hand, that cost (and the cost of funding cases in progress) is borne by the taxpayer; while under conditional or contingency fees, lawyers carry much of the risk.
5.56 My preference would be to emphasise the development of conditional fees, because they put the risk on those best able to manage it. But the possibility of establishing a CLAF is definitely worth exploring. It might be particularly appropriate for very expensive cases where it was not practicable for even a large firm to bear the amount of risk involved(8).

Conclusions

5.57 My principal recommendation is that a single Government department should be responsible for all aspects of the civil justice system. This department should be charged with improving management information, developing an IT strategy for the whole system, and facilitating the development of alternative forms of dispute resolution. The Government should also continue to place emphasis on ensuring that the civil law itself is clear and accessible. More specifically:

  • there should be separate arrangements for funding cases that raise issues of wider public interest (paragraph 5.19);

  • court fees should be set at a level that reflects the cost of court services, with cross-subsidy between different fees kept to the minimum practically achievable (paragraphs 5.21-25);

  • the Court Service should be required to draw up a Plan to reduce substantially the number of civil courts (paragraph 5.27);

  • a Community Legal Service should be built on the existing plans for Regional Legal Services Committees, and should then develop a local network of outlets for basic information and diagnostic advice (paragraphs 5.32-33);

  • franchising and contracting should be developed with a view to the wider market for legal services on which they can have a significant, beneficial impact (paragraph 5.44);

  • conditional fee arrangements should become available for all civil proceedings. The case for contingency fees should be reconsidered. Legal aid should not be granted in cases where there is a suitable alternative form of funding (paragraphs 5.46-47 & 5.50); and

  • there may also be a place for a CLAF for some types of case (paragraph 5.56).

5.58 I also recommend a small number of reviews which go with the grain of the reforms set out in my report. None of them would delay the implementation of the reforms. They are:

  • an immediate examination of the possible advantages of no-fault schemes and strict liability, starting with medical negligence (paragraph 5.8);

  • a rapid investigation of the rule that costs follow the event (including its possible application to some tribunals) and the mechanisms for determining costs awards (paragraph 5.45 & 5.28);

  • a review of the restrictions that currently apply to legal expenses insurance (paragraph 5.52); and

  • a programme of reviews of tribunal procedures and fee-charging policies (paragraph 5.28).

Endnotes

(1)
Such an investment in educational information is potentially highly cost-effective, because it could prevent many disputes from occurring at all.
(2)
See, for example, the response of the Public Law Interest Group to the previous Government's legal aid Green Paper 'Targeting Need', and The Law Society's 1996 document 'Better Access, Better Justice'.
(3)
I also suggested in paragraph 3.6 that legal aid might in future be available to help litigants with their travel costs in appropriate cases.
(4)
As part of their initial remit, the Legal Aid Board has asked the Committees to consider the implications of research into alternative methods of delivering advice services (such as telephone advice lines, mobile 'outreach' services, and specialist 'second tier' agencies).
(5)
Under a conditional fee agreement, the client agrees to pay a success fee of up to 100% of the solicitor's normal bill if the case is won, but pays nothing if it is lost. The figure of 100% should allow solicitors to take cases with a 50% chance of success. The Law Society has recommended that solicitors should not agree to success fees that would take more than 25% of the monies recovered.
(6)
In 1995, premium income from personal legal expenses insurance sold as add-ons to household policies was approximately £25 million. Premiums range from about £5 to £15 a year.
(7)
The insurance industry has raised a concern that the common law doctrines of champerty and maintenance may prevent insurers from block-contracting for solicitors' services on a pre-paid basis. There is also an EC Directive that guarantees a free choice of lawyer to the insured, limiting the extent to which insurers can rely on panels of solicitors.
(8)
I do not see a CLAF supporting complex test cases - see paragraph 5.19.

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