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Chamber

Meeting of the Parliament 26 April 2018

26 Apr 2018 · S5 · Meeting of the Parliament
Item of business
Civil Litigation (Expenses and Group Proceedings) (Scotland) Bill: Stage 3

I have already dealt with that point. Notwithstanding the issue about judicial expenses, the architect of the policy south of the border has effectively recanted in his conversation with Sheriff Principal Taylor, because the policy has had the opposite effect, such that solicitors in England and Wales are not offering damages-based agreements. As mentioned by Daniel Johnson, John Finnie and Liam McArthur, the bill is designed to do the very opposite of that. It is designed to improve access to justice as far as litigation in Scotland is concerned.

In the letter to which I have alluded, Sheriff Principal Taylor said:

“My concern is that the recent amendment to the Bill will have the same consequence in higher value cases in Scotland as has happened in England & Wales; DBAs will not be offered to pursuers who have sustained catastrophic injury. The recent amendment thus poses an existential threat to DBAs being offered in higher value cases in Scotland. What will be the consequence of the amendment? The likely outcome is that cases will either not be raised at all or will settle for considerably less than the true value of the claim.”

Perhaps that helps to deal with Mr Kerr’s point.

Finally, the Law Society letter to the Justice Committee reiterates two practical issues that Sheriff Principal Taylor raised in his report. The first relates to settlement offers. At present, most of those are put forward by insurers without there being any breakdown for the different heads of claim, meaning that past loss and future loss are not broken down and separated when an offer is made. The second practical interest is that, as the legal services provider will be paid for past loss work and not for future loss, an obvious conflict of interests will be created between the solicitor and the client.

In the same item of business

The Deputy Presiding Officer (Christine Grahame) SNP
The next item of business is consideration of stage 3 amendments to the Civil Litigation (Expenses and Group Proceedings) (Scotland) Bill. In dealing with am...
The Deputy Presiding Officer SNP
I call group 1. Amendment 34, in the name of Margaret Mitchell, is the only amendment in the group.
Margaret Mitchell (Central Scotland) (Con) Con
For an ordinary member of the public, understanding civil litigation can be a complex and confusing process. The Civil Litigation (Expenses and Group Proceed...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
I share many of Margaret Mitchell’s concerns, and it is important to note her comment on the proposals in the bill being about increasing access to justice. ...
Liam McArthur (Orkney Islands) (LD) LD
Like Daniel Johnson, I think that Margaret Mitchell very fairly identified an issue. Access to justice is predicated on there being a level of transparency a...
The Minister for Community Safety and Legal Affairs (Annabelle Ewing) SNP
I refer members to my entry in the register of interests. Members will note that I am a member of the Law Society of Scotland and that I hold a current pract...
Margaret Mitchell Con
A number of points have been raised. Daniel Johnson said that the amendment might prohibit settlements at the court door, but there is nothing to prevent a p...
The Deputy Presiding Officer SNP
The question is, that amendment 34 be agreed to. Are we agreed? Members: No.
The Deputy Presiding Officer SNP
There will be a division. As this is the first division of the stage, the Parliament is suspended for five minutes. 14:44 Meeting suspended. 14:49 On resum...
The Deputy Presiding Officer SNP
We will proceed with the division on amendment 34. For Balfour, Jeremy (Lothian) (Con) Ballantyne, Michelle (South Scotland) (Con) Bowman, Bill (North Ea...
The Deputy Presiding Officer SNP
The result of the division is: For 29, Against 84, Abstentions 0. Amendment 34 disagreed to. Section 4—Power to cap success fees
The Deputy Presiding Officer SNP
We come to group 2. Amendment 5, in the name of the minister, is grouped with amendments 6 to 8, 13 and 14.
Annabelle Ewing SNP
Amendments 5 to 8 are technical in nature. We have been working with Her Majesty’s Treasury on the United Kingdom Financial Guidance and Claims Bill, which w...
The Deputy Presiding Officer SNP
We move to group 3. Amendment 1, in the name of Daniel Johnson, is grouped with amendments 2, 2A, 3 and 4.
Daniel Johnson Lab
I will speak to amendments 1 to 4 in my name and against Margaret Mitchell’s amendment 2A. I apologise in advance, Presiding Officer, as these are complex a...
Margaret Mitchell Con
Amendment 2A would amend amendment 2, in the name of Daniel Johnson, the effect of which would be to remove the ring fencing of future loss that was agreed t...
Daniel Johnson Lab
Does the member recognise that the awarding of additional fees, as she has set out and which she is setting a great deal of store by, is done in only 5 per c...
Margaret Mitchell Con
We are looking at legislation in which it is clearly set out that those cases are very complex, and the award amounts that we are talking about refer specifi...
Liam McArthur LD
It is difficult to admit that we got it wrong, but I think that that is exactly what all of us on the committee did at stage 2. There are mitigating circumst...
John Finnie (Highlands and Islands) (Green) Green
I associate myself with the comments of my colleagues Daniel Johnson and Liam McArthur. I am prepared to say that it is important that we constantly reflect ...
Liam Kerr (North East Scotland) (Con) Con
I will speak against amendments 1 and 2. If amendment 2 is agreed to, we will support amendment 2A. I confirm that we will vote for amendments 3 and 4. At t...
Daniel Johnson Lab
Would Mr Kerr not recognise that the proportions that are charged under success fee agreements at the moment can be as high as 60 per cent, as Liam McArthur ...
Liam Kerr Con
I will come back to that point, but I want to deal with a point that Daniel Johnson made earlier. He criticised the insurance industry for allegedly wishing ...
Annabelle Ewing SNP
What evidence can the member cite to support that claim? He will be aware that it has been refuted by, for example, the Association of Personal Injury Lawyers.
Liam Kerr Con
That is quite so but, in committee, we received a variety of evidence that suggested that there was a possibility of that happening and that it had happened ...
Annabelle Ewing SNP
I rise to support Daniel Johnson’s amendments 1 to 4. The bill as introduced followed Sheriff Principal Taylor’s recommendation that an award for future loss...
Liam Kerr Con
In those conversations with solicitors firms, did many of them report back that, if the future loss was ring fenced, they would cease to act in personal inju...
Annabelle Ewing SNP
We have to look at the facts that are before us and listen to the evidence that has been submitted to me as the minister and to the committee. People are tel...
Margaret Mitchell Con
Does the minister acknowledge that the situation in England and Wales is not analogous with the situation in Scotland, and that we are not comparing apples w...
Annabelle Ewing SNP
I have already dealt with that point. Notwithstanding the issue about judicial expenses, the architect of the policy south of the border has effectively reca...