§ Mr. BurnettTo ask the Parliamentary Secretary, Lord Chancellor's Department what guidance his Department has issued to ensure that legal advisers working on a conditional fee basis make disclosures of that fact to any other party to litigation or to a transaction; and if the guidance provides that such disclosures be made. [110034]
§ Mr. LockAt present there is no need for special guidance as the opponent's liability for costs is unaffected if a claimant chooses to finance litigation through a conditional fee agreement. However, the success fee in a conditional fee agreement and the premium for any insurance policy against costs will become recoverable from the losing party from 1 April, when the relevant provisions of the Access to Justice Act 1999 come into force. On 1 February, the Government published a report entitled "The Government's Conclusions Following Consultation on Conditional Fees: Sharing the Costs of Litigation". In view of the opponent's potential liability for increased costs if there is a success fee or insurance premium, the report includes recommendations to the Civil Procedure Rule Committee as to how rules of court might deal with issues of disclosure. Copies of the report have been placed in the Libraries of both Houses.