Funding Your Claim
Solicitors’ costs can often sound complicated and confusing, but don’t be alarmed. We will explain it all to you to ensure that you fully understand how your claim is paid for and that your personal needs are met.
There are a number of ways to fund your claim:
Conditional Fee Agreement (“CFA”)
This is also known as a ‘No Win No Fee’ agreement.
If you win your claim (i.e. your claim is successful and we recover compensation for you), the Defendant or their insurance company will be responsible for paying our basic legal fees and disbursements on your behalf. Disbursements is a term solicitors use for expenses we pay to others such as Court fees, medical report fees etc.
If you lose your claim, we will not charge you for the work that we do However, you may be ordered to pay your opponent’s costs. In order to protect you from the risk of having to pay these, we recommend that you use an insurance policy, known as ‘legal expense insurance. This policy will cover the other side’s costs and disbursements as well as any disbursements we incur. Any disbursements that cannot be recovered from your opponent or that are awarded against you if your claim is unsuccessful will also be covered by this insurance policy.
Government changes to how personal injury claims are paid for came into effect on 1st April 2013, which means that you will no longer be able to recover certain legal costs from your opponent.
The Defendant will no longer pay:
These charges will be deducted from your compensation in the event that you are successful, up to a maximum limit which we will discuss with you. You will not be charged anything if you lose your claim.
Legal Expenses Insurance
This comes in two forms. “Before the Event” and “After the Event”
”Before the Event’ insurance (BTE) is insurance cover that you will have bought before having your accident. BTE insurance is usually bolted on to your motor or household insurance policy and is specifically aimed at paying legal fees up to a certain amount, usually £50,000 or £100,000.
You should look for any insurance policies that were live at the time of your accident to check whether they will cover your legal fees. We can review these policies for you and speak to your insurers to find out whether the insurance you have will cover you with the type of claim you want to make.
“After the Event” insurance (ATE) is insurance cover that you purchase after your accident with a view to pursuing a personal injury claim. Again it will pay the other side’s costs and disbursements as well as our disbursements if your claim is not successful up to a certain limit (normally £100,000.00).
Trade Union or Professional Membership
If you are a member of a Trade Union, they may be able to provide help with legal issues or fund your claim.
Private Paying Basis
If you do not have any other funding available to you, we can agree with you an hourly rate for which we will charge our work on a private basis.
tel: 0333 003 1909
fax: 0845 521 0946
Click here to Contact NewLaw