Litigation Letter
Additional liability recovery
At the Auckland round table discussion (above) the senior costs judge, Peter Hurst, said it must be faced that we may have
to change the system of allowing success fees and insurance premiums to be recovered between the parties. Although many claimant
lawyers would find the suggestion to be heresy, he was in favour of returning to the original CFA model where success fees
and premiums were not recoverable from the defendant but were paid out of damages. Professor John Peysner described CFA funding
as ‘daft’ and a poor substitute for legal aid. Defendant insurance companies had set out to frustrate CFAs since their inception.