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"Opponents with deep pockets and poor cases will become even more belligerent as these caps present a target to be reached so that they might price the other side out of the dispute. They will take every point good or bad happy in the knowledge there is a only a limited costs risk. "

This has always been my fear with a capped regime. But would it not also give the other party a very good reason for telling the other side to bog off? If faced with a mammoth series of delaying tactics and so on, it would also give more incentive for judges to give default judgments, on the basis that the conduct is likely to cause the cap to be breached.