Government goes ahead with costs shifting for libel

The Ministry of Justice has announced this morning that judges can apply one-way costs shifting to defamation cases from April 2014.

As first reported on solicitorsjournal.com, justice minister Lord McNally told the House of Lords in April that ministers were considering the introduction of a form of QOCS for libel.

The MoJ said that implementation of the reform would coincide with an end to recoverability of conditional fee insurance premiums and success fees in libel actions, which was put on hold after LASPO.

Justice minister Helen Grant said this morning: "Defamation and invasion of privacy can have a devastating effect on lives and it is crucial that people, whatever their means, can stand up for their rights in court even when they are facing a wealthy opponent who can afford to appoint a team of expensive lawyers."

A spokesman for the MoJ explained that costs shifting will be applied not only in favour of individuals with modest means but also defendants, such as small media companies being sued by wealthy celebrities.

"The changes would mean that if someone of modest means believed they had been defamed or had their privacy invaded by the media they could take legal action and would only be responsible for paying their own lawyers, even if they lost.

"This would be different from the standard position for civil court cases in England and Wales, where the losing party usually has to pay the winning side's legal bills, on top of their own.

"The government proposals have been put forward after the Leveson Report raised concerns that people could be put off from suing because the large media groups they were taking on would appoint expensive legal teams, which they might end up having to pay for.

"Victims of defamation and invasion of privacy, including the McCann and Dowler families, backed his recommendation."