Blog
The Solicitors Regulation Authority's decision to bring disciplinary proceedings against two solicitors linked to the Post Office Horizon scandal is a reminder that the consequences of major litigation rarely end when the courtroom proceedings are over. The regulator has referred two solicitors to the Solicitors Disciplinary Tribunal over allegations arising from events after the Horizon scandal had become public and while the statutory inquiry was underway. One case concerns an alleged failure to cooperate fully with the inquiry, while the other relates to legal fees charged to a former sub-postmaster. The allegations will now be determined by the Tribunal, and no findings have yet been made.
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The UK's employment tribunal judges have issued unusual guidance aimed at curbing a sharp rise in interim relief applications — a development they have linked, at least in part, to the growing use of artificial intelligence in claim preparation. Interim relief is one of the most powerful remedies available in employment law. If granted, it can require an employer to continue paying a dismissed employee until a full hearing takes place. Historically, such applications were rare. Judges now report a dramatic increase in their use, creating additional pressure on a tribunal system already struggling with significant backlogs.
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A recent court ruling, reported by Solicitor News, has reinforced an important principle for claimants – solicitors cannot assume they are entitled to recover a success fee simply because a case succeeds. The decision highlights the courts' willingness to examine funding arrangements carefully and ensure that fees charged to clients are properly justified. For consumers involved in compensation claims, group litigation, or class actions, the ruling is a reminder to pay close attention to how legal costs may affect any eventual payout.
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The UK's collective actions regime was intended to deliver compensation to consumers harmed by anti-competitive conduct. Yet another high-profile case has ended with no compensation, no admission of liability, and millions spent on legal fees. Last week, the Competition Appeal Tribunal approved a "drop hands" settlement in the £480 million collective action brought by Which? against Qualcomm. Under the agreement, Qualcomm pays nothing, both sides bear their own costs, and the estimated 29 million consumers represented in the claim receive no compensation. The figures are striking. Claimant law firm Hausfeld had already received nearly £18 million in fees funded by litigation backers and has now written off a further £14 million in deferred fees. Counsel reportedly lost more than £1 million in unpaid fees, while Qualcomm's defence costs were said to be around £44 million.
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The High Court's rejection of litigation funder Innsworth Capital's attempt to secure a larger share of the Mastercard settlement is about more than one funding dispute. It offers a revealing glimpse into the realities of Britain's class action regime. After more than a decade of litigation, a claim once valued at £14 billion concluded with a £200 million settlement. What followed was not a debate about compensation for consumers, but a court battle over how much of the proceeds should go to the funder. That fact alone should give policymakers pause.
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The motor finance compensation saga has taken another turn, and once again consumers risk being caught in the middle. According to reports in the legal press, claims firms and claimant lawyers are increasingly challenging the Financial Conduct Authority's proposed motor finance redress scheme, arguing that some consumers could recover more through litigation than through the regulator's compensation programme. At first glance, that may sound consumer-friendly. Look closer, however, and a more important question emerges: Who benefits when consumers are steered away from a free redress scheme and towards years of litigation?
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Independent information platform on class action risks, litigation funding structures, and claimant awareness.