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Libel costs are too high, says Carter-Ruck partner

Posted: 11/11/09 By: Laura Oliver

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A partner from the law firm at the centre of the recent super-injunction debate has criticised the high cost of libel cases.

Speaking at an event launching the Index on Censorship (IOC) and English PEN's proposals for a new libel bill, Carter-Ruck partner Nigel Tait said libel costs were 'the worst aspect' of current legislation.

The use of success fees, CFAs (Conditional Fee Arrangements) and 'After the Event' (ATE) insurance have been widely criticised for driving up the cost of libel cases, particularly for defendants, who may incur the costs if they lose the case.

A recent report from the Reuters Institute suggested that it was 140 times more expensive than the European average to bring a libel action in England.

"Costs are so high that people just settle cases rather than fight them," said Tait.

"The law is being developed on a case-by-case basis, but we don't have the cases because no one has the money to go to court."

As part of the IOC and English PEN report, a cap of £10,000 on libel costs was suggested.

Tait admitted that some of proposed reforms, which included changing the burden of proof in libel cases and exempting certain size firms from libel law, from IOC and English PEN filled him with 'fear and dread'.

"We have clients coming into our offices and they are crying their eyes out, and they tell us their lives have been ruined and they want to do something about it," said Tait.

"Almost none of them are after money, but they find they can't do anything about it apart from going to trial and spending huge amounts of money. It's obviously another side of the story but I think it's important to have a debate."

But Tait agreed with the report's suggestion of a tribunal alternative to full libel trials.

"If you've got it wrong and you should apologise, or withdraw what you put on the internet, at least you could go to a tribunal and test it," he said.

Carter-Ruck, which has represented high profile figures and celebrities in libel actions, was recently criticised for its work with Trafigura.

Speaking at yesterday’s event, Ken Macdonald QC said libel reform was not about targeting individual law firms, but reforming the legislation as a whole.

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