Government says no to hybrid DBAs

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The Government has said that it will not consider introducing hybrid damages-based agreements (DBAs).

Lord Justice Jackson himself has called for hybrid DBAs to enable lawyers to offer so-called ‘no win, low fee’ arrangements, but The Ministry of Justice (MoJ) has said that such arrangements could encourage “litigation behaviour based on a low-risk/high-returns approach”.

The MoJ has however, asked the Civil Justice Council (CJC) to take a detailed look at technical revisions to DBAs.

The Law Society Gazette has reported that a CJC working group, chaired by Professor Rachael Mulheron of Queen Mary University London, will look at changing the regulations so defendants will be able to use DBAs, by widening the rules on parties receiving a specified financial benefit.

Lord Dyson, master of the rolls and chairman of the CJC said that he was disappointed with the decision. Lord Justice Jackson had already urged the government not to be put off hybrid DBAs by “powerful vested interests”, according to the Gazette.

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Marek Handzel

Marek Handzel is the editor of Claims Magazine. Marek welcomes articles, letters, or feedback from readers and can be reached by emailing marek.handzel@barkerbrooks.co.uk