A review of Civil Litigation Costs, which looked at the financial side of court cases, has been unveiled by Lord Justice Jackson.
In his report, Lord Justice Jackson said that the existing structure of the "no win, no fee" agreements had to be reformed as they were not benefiting the public.
The review also said that "no win, no fee" lawyers should not be able to take "success fees" from defendants, but they should have a share of damages.
In the recent years, England and Wales saw huge increases in civil litigation costs. It was found that in some cases, fees to lawyers even exceeded damages by huge margins.
Commenting on the issue, Lord Justice Jackson said, "What I want to do is to focus the system so less money is paid to intermediaries and others in the process, and more money is paid to victims."
Presently, defendants bear the burden of bill for insurance against a failed claim.
Lord Justice Jackson recommended that there should be a 25 per cent limit on the share of damages paid to lawyers in a successful claim. He also said that lawyers should be paid out by the winning side.
Lord Justice Jackson further added that reforms in the Civil Litigation Costs could save the taxpayer millions of pounds.