In April 2013 reforms came into effect pursuant to the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (“LASPO”) resulting in a ban on recovering after-the-event insurance premiums and success fees from losing parties, save in respect of insolvency proceedings and mesothelioma claims.
The exemption in relation to insolvency proceedings was due to be lifted in April but last week the government announced that it would “for the time being” delay applying the provisions of LASPO to insolvency proceedings.
Accordingly so called “no-win, no fee” agreements will continue to operate on a pre-LASPO basis for insolvency proceedings with any success fees and after-the-event insurance premiums remaining recoverable from the losing party.
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