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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.

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