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Foreign lawsuits may face higher UK legal fees Foreign lawsuits may face higher UK legal fees
(6 months later)
Higher fees may be introduced for foreign businessmen and Russian oligarchs who pursue their multimillion-pound disputes in British courts, under a review announced on Tuesday.Higher fees may be introduced for foreign businessmen and Russian oligarchs who pursue their multimillion-pound disputes in British courts, under a review announced on Tuesday.
New sources of income will be tapped to improve the "resourcing and administration" of the UK's courts and tribunals, according to the justice secretary, Chris Grayling.New sources of income will be tapped to improve the "resourcing and administration" of the UK's courts and tribunals, according to the justice secretary, Chris Grayling.
In a written ministerial statement, he said: "Our courts and judiciary command great respect around the world and we should be proud of their international reputation and the contribution they already make to our economy.In a written ministerial statement, he said: "Our courts and judiciary command great respect around the world and we should be proud of their international reputation and the contribution they already make to our economy.
"This country is a major centre for legal services and dispute resolution. I want to explore how we can further enhance the position of the UK at the centre of the international legal market and the revenue it can generate. I also want to ensure that those who litigate in our courts pay their fair share, and that it is possible to raise the revenue and investment necessary to modernise the infrastructure and deliver a better and more flexible service to court users.""This country is a major centre for legal services and dispute resolution. I want to explore how we can further enhance the position of the UK at the centre of the international legal market and the revenue it can generate. I also want to ensure that those who litigate in our courts pay their fair share, and that it is possible to raise the revenue and investment necessary to modernise the infrastructure and deliver a better and more flexible service to court users."
Lawyers bring in about £3.5bn in foreign earnings each year. Cases such as the high-profile dispute between Roman Abramovich and Boris Berezovsky last year generated tens of millions in legal fees.Lawyers bring in about £3.5bn in foreign earnings each year. Cases such as the high-profile dispute between Roman Abramovich and Boris Berezovsky last year generated tens of millions in legal fees.
Grayling said: "We need to … provide a more efficient service that delivers access to justice quickly and effectively, while delivering value for money for the taxpayer. At the same time, we must preserve the independence of the judiciary which lies at the heart of our constitutional arrangements.Grayling said: "We need to … provide a more efficient service that delivers access to justice quickly and effectively, while delivering value for money for the taxpayer. At the same time, we must preserve the independence of the judiciary which lies at the heart of our constitutional arrangements.
"Any new model must support the administration of justice as a core pillar of our constitution, and its effective delivery will remain an important responsibility of the state.""Any new model must support the administration of justice as a core pillar of our constitution, and its effective delivery will remain an important responsibility of the state."
The lord chief justice, Lord Judge, said: "The rule of law and access to justice are fundamental to our society; it is increasingly difficult to secure adequate funding to support and develop the courts and tribunals.The lord chief justice, Lord Judge, said: "The rule of law and access to justice are fundamental to our society; it is increasingly difficult to secure adequate funding to support and develop the courts and tribunals.
"The senior president of tribunals [Sir Jeremy Sullivan] and I recognise the wisdom of exploring ways in which to achieve funding arrangements which are consistent with the independence of the judiciary, the responsibility of the state to provide access to justice and the need for appropriate accountability.""The senior president of tribunals [Sir Jeremy Sullivan] and I recognise the wisdom of exploring ways in which to achieve funding arrangements which are consistent with the independence of the judiciary, the responsibility of the state to provide access to justice and the need for appropriate accountability."
Lucy Scott Moncrieff, president of the Law Society, which represents solicitors in England and Wales, welcomed the initiative. "In a time of fiscal austerity, it is right that the MoJ [Ministry of Justice] seeks to find new and innovative ways of funding and updating the courts service," she said.Lucy Scott Moncrieff, president of the Law Society, which represents solicitors in England and Wales, welcomed the initiative. "In a time of fiscal austerity, it is right that the MoJ [Ministry of Justice] seeks to find new and innovative ways of funding and updating the courts service," she said.
"The MoJ's review should have at its heart the principles of ensuring that justice is accessible to all, maintaining the rule of law through an effective impartial courts service, and enhancing the international competitiveness of the jurisdiction.""The MoJ's review should have at its heart the principles of ensuring that justice is accessible to all, maintaining the rule of law through an effective impartial courts service, and enhancing the international competitiveness of the jurisdiction."
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