Legal Aid, Sentencing and Punishment of Offenders Bill

The hon. Lady will be pleased to hear that I have met the Corporate Responsibility Coalition—CORE—and the solicitors who acted for Trafigura. I have acted for a number of people, and of course I shall be prepared and happy to receive additional representations from her. We understand that the amendments seek to protect the rights of individuals in developing countries to claim damages against large multinational companies, but the amendments go much wider than that, and would provide that a losing defendant should pay the success fee and ATE insurance premium based on whether it is a multinational company, regardless of the nature of the claim or status of the claimant. Given the concerns that I have been raising in relation to cases brought by claimants in developing countries, I shall concentrate my response on those cases. The amendments are neither necessary nor appropriate. The Government believe that it will still be possible to bring claims against multinational companies, once our CFA reforms are implemented, but—this is one of the major reasons for our reforms overall—we believe that the costs involved will be more proportionate to the sums in issue. What the proposals in the Bill seek to address is not the validity of the claims, but the iniquity of a system that can allow such disproportionate costs. It is worth emphasising that the current system of recoverable success fees and recoverable ATE insurance premiums, with the consequences for high civil costs, is not seen in any other jurisdiction in the world. CFAs will continue to be available, but the Bill also extends the funding options. The Government seek to allow damages-based agreements to be used for the first time to fund such claims. Group actions in particular are suited to DBAs, as legal representatives may recover their fees as a percentage of the damages awarded to each successful claimant. Amendments 163, 164 and 165 seek to ensure that success fees continue to be recoverable in defamation and privacy claims. The Government are aware of concerns about access to justice and the ability of those with modest means to pursue claims, often against powerful organisations. I am aware that there are slight definitional differences, which I will not go into. However, all hon. Members will be aware of one of the most high-profile cases, involving the Dowler family, who were successful in their claim against News International. Debate interrupted (Programme Order, 31 October). The Deputy Speaker put forthwith the Question already proposed from the Chair (Standing Order No. 83E), That the amendment be made. The House divided: Ayes 223, Noes 315.