Lord Justice Jackson’s report on civil litigation costs has endorsed the recommendations on limiting of costs put forward by Index on Censorship and English PEN’s report, Free Speech Is Not for Sale

In a report published today, Lord Justice Jackson noted: “Many articles have recently appeared in the press concerning libel tourism and the effects of current libel law and the costs regime. A report entitled “Free Speech is not for Sale” by English PEN and Index on Censorship (“EPIC”) was published in November 2009 and gained wide publicity. The report argues that English libel law imposes excessive restrictions on free speech and has a chilling effect upon journalism and publishing. EPIC makes a number of recommendations for reform, one of which is: “Cap base costs and make success fees and ‘After the Event’ (ATE) insurance premiums non-recoverable.”

“… In relation to costs, I am in agreement with certain of EPIC’s conclusions. In particular, for the reasons set out in chapters 9 and 10 above, I consider that success fees and after-the-event (“ATE”) insurance premiums should cease to be recoverable.”

However, the report proposes that an increase in damages awards of 10 per cent, along with “qualified one ways cost shifting”: “By ‘qualified’ one way costs shifting I mean that the claimant will not be required to pay the defendant’s costs if the claim is unsuccessful, but the defendant will be required to pay the claimant’s costs if it is successful.”

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