Funding a Claim

Range of options

If you ask us to consider a possible claim for personal injury then one of the first issues to address will be how the claim should be funded. There is often a range of options to consider.

 These may include:

  • Conditional fee agreement/ “No win no fee”
  • “Before the event” legal expenses insurance
  • Legal Aid

We will explore with you what funding options are available and which approach would be in your best interests.

Beware of insurer referrals

People suffering injury very often face one of the crisis periods in their life as they try to manage with the pain and financial consequences of the injury. Sadly the position of Claimants is frequently made worse as they accept referral by their insurers to solicitors on the insurer’s panel. Too often we have been approached by Claimants to take over cases where they have received a second rate and impersonal service from poorly qualified advisers dealing with claims in a highly processed way.

Insurers will often try to persuade potential Claimants that unless they accept referral to solicitors on the insurer’s panel that they will be disadvantaged in relation to options for funding the claim. This is rarely the case and legal expenses insurance is often used buy insurers as simply a way of trying to persuade potential Claimants to accept referral to solicitors on the insurer’s panel.

Remember you do have a choice as to who deals with your claim.

We are confident of providing you with funding arrangements to suit you and a comprehensive and quality service based on personal care from experienced advisers.

“No win no fee”/ Conditional fee agreement/ Success Fee

An option that we can frequently offer Claimants will be to act under the terms of a conditional fee agreement (a “CFA ). A CFA is commonly described as a “No win, No fee” agreement.

A CFA is an arrangement for funding a claim under which the solicitor is only paid for the work carried out if the claim is successful.

Sometimes the CFA also provides for a success fee to be paid in the event of the claim being successful. A success fee is an additional fee over and above the solicitor’s basic costs which reflects the risk taken that if the claim fails the solicitor will not be able to charge for the work carried out. Again the success fee is only paid if the claim is successful.

Success fees payable under CFAs entered into before April 2012 are recoverable from the Defendant. Success fees payable under CFAs entered into after April 2012 will no longer be recoverable from the Defendant.

“Before the event” legal expenses insurance

You may for instance have the benefit of legal expenses insurance as part of your car or home insurance. This is commonly referred to as “before the event” (BTE) legal expenses insurance

If you have such insurance then we may be able to act for you on the basis that if the claim should fail our costs (and possibly those of your opponent) will be met by your insurers.

“After the event” legal expenses insurance

To provide further financial protection for Claimants where we are acting under a CFA we will where appropriate propose that they take out “after the event” legal expenses insurance.

We can provide further details.

The government is in the process of introducing a range of changes that will have a profound impact on the funding of personal injury claims. The changes will generally create a less favourable environment for injured parties pursuing claims for compensation. The main impact of these changes will take effect in April 2013.

The changes being introduced will have an impact on the terms of such “after the event” legal expenses insurance.

Legal Aid

Legal Aid is only available in clinical negligence cases

The government is in the process of introducing a range of changes that will have a profound impact on the funding of personal injury claims. The changes will generally create a less favourable environment for injured parties pursuing claims for compensation. The main impact of these changes will take effect in April 2013.

The changes being introduced will further reduce the range of cases in which legal aid is available.

Please contact us if you would like any further details of the assistance we can offer.

 

Brighton office

Tel 01273 775533

Eastbourne office

Tel 01323 730543

East Grinstead office

Tel 01342 310600

Forest Row office

Tel 01342 822112

Lewes office

Tel 01273 477071

Seaford office

Tel 01323 891412

Pulborough office

Tel 01798 875358

Storrington office

Tel 01903 743201

Gatwick office

Tel 0800 84 94 101

Primary Contact

John  Lingwood
John Lingwood

Partner

T | 01273 223215
E | email