Boost for no-win, no-fee cases

People winning court cases on a no-win no-fee basis have been given a financial boost by new legal rules to close a loophole in the system.

In the past, losers had escaped having to fund the legal fees of the victor if the complainant had brought the case on a no win-no-fee basis.

Insurance companies often cited the little known Indemnity Principle to avoid paying winners' costs.

As a result many have found that their award has been eaten up by their own solicitors' fees.

"The indemnity principle prevents clarity and transparency in 'no win no fee' agreement," said Baroness Scotland, parliamentary Secretary at the Lord Chancellor's Office, speaking at the Association of Personal Injury Lawyers annual conference in Brighton.

The new rules come into effect from 3 June.