Regulatory Risk Update - Defendant's Costs in Criminal Proceedings

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The ability of companies to recover costs of defending criminal proceedings has been severely restricted by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (the "Act").

CHANGES TO THE LAW -

The relevant provisions of the Act came into force on 1 October 2012. Previously if criminal proceedings against a company were discontinued or the company was acquitted then costs could usually be recovered pursuant to a Defendant's Costs Order. As a result of the changes made by the Act, Defendant's Costs Orders can no longer be made in favour of companies in criminal proceedings in the Magistrates' and Crown Courts.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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