As a result of the recently published legal reform proposals, travel firm operators and agents have stated that they may end up facing fewer personal injury claims.
Some personal injury lawyers believe that the changes that Lord Justice Jackson proposed to the ‘no win no fee‘ civil case system could result in a changing landscape of claims activity against travel companies.
The current system bars those who lose accident claims from paying legal costs. This had led to criticism of the system because some feel this encourages speculative claims.
The new reforms would restructure the system and see claimants footing their own legal bills in the event that they lose their court case. The cost potentiality of these claims would also be on the rise as plans are being set in place to remove the ability for insurers to cover against the eventuality of a lost case.
Whether they win or lose their case, defendants would be responsible for their own legal costs under the proposed reforms. Additionally they will be responsible for the legal costs of the claimant should he or she win their case against them.
Industry experts say that the reforms would act as a discouragement to speculative cases. One expert stated that many would think twice about taking legal action if the possibility exists of an increase in the costs to bring such a suit.
This will result in personal injury lawyers only wanting to take on cases with a strong chance of winning, the expert said. He added that such reforms would completely restructure the legal landscape of claims made against travel firms.
Claimants who end up winning their case will also see their personal injury compensation payments increase by a factor of 10 per cent as a result of the new reforms.