Frequently Asked Questions
- What does it cost to pursue my claim?
- Although all claims under our scheme are conducted in such a way as to ensure your protection. The legal system means that your personal injury claim could involve the following;
- Your own legal costs
Although your solicitor will work for you under a “no win, no fee” conditional fee agreement, thereby not charging you for their services should you fail to win your claim, in the event that you are successful they are then entitled to payment for the work they have undertaken on your behalf. Under the terms of your conditional fee agreement the solicitor will not ask you to pay these costs but will instead seek to claim them directly from the other side on your behalf. As you have already been successful in your claim, thereby proving that the other party was to blame for causing your injuries, you will be entitled to recover all of your reasonable legal costs which will normally be paid directly to your solicitor. - Your own disbursements
During the process of dealing with your case, your solicitor will need to incur certain costs on your behalf to enable them to prove and pursue your claim. This can involve items such as the cost of obtaining copies of your hospital and GP records and the collective terms used to refer to these costs is “disbursements”. Your solicitor will normally pay these on your behalf whilst your claim is progressing and then, as explained above with your legal costs, upon the successful conclusion to your claim, your solicitor will recover all reasonable disbursements from the other party. - Your solicitor’s success fee
Under the terms of your conditional fee agreement, your solicitor will not be paid for the work they undertake unless your claim is successful and this therefore puts them at risk of not receiving any payment. As they are faced with this risk, the legal system in England and Wales allows them to charge an additional success fee on top of your legal costs in those cases where their clients win their claim. The purpose of this is to allow the solicitor to cover any losses they face on unsuccessful claims with the extra they receive by way of a success fee on the cases they win. This should hopefully encourage the solicitors to take on more claims under a conditional fee agreement, thereby giving more members of the public an easily accessible and cost effective way to pursue otherwise costly legal matters.
- What is a Conditional Fee Arrangement?
- Quite simply it is an agreement between you and your solicitors that says they will pursue your personal injury claim against the party that caused the accident, on the understanding that if the claim does not succeed they will not charge you for their costs but if the case is successful they can recover those costs from the other side and also seek an additional success fee which you and they agree from the beginning.
- This arrangement if commonly referred to as a No Win No Fee agreement.
- Do I have to pay my Solicitors success fee?
- No, under the Access to Justice Act, the other side pays this, not you.
- Why can my Solicitors charge a success fee?
- Under the terms of your conditional fee agreement, your solicitor will not be paid for the work they undertake unless your claim is successful and this therefore puts them at risk of not receiving any payment. As they are faced with this risk, the legal system in England and Wales allows them to charge an additional success fee on top of your legal costs in those conditional fee agreement cases where their clients win the claim. The purpose of this is to not only allow the solicitor to cover any losses they face on unsuccessful claims with the extra they receive by way of a success fee on the cases they win but the additional income they could receive should also hopefully encourage the solicitors to take on more claims under a conditional fee agreement, thereby giving more members of the public an easily accessible and cost effective way to pursue otherwise costly legal matters.
- What is After the Event Legal Expenses Insurance?
- This is an insurance policy that covers the payments you might be responsible for as a result of pursuing your claim such as your own legal costs and disbursements and/or the other side’s costs.
Although you should be entitled to recover all reasonable legal costs and disbursements when your claim has been successful, there may be occasions where, for whatever reason, the other side may not be ordered to pay your legal costs and disbursements, either partially or in full.
Likewise, whilst your solicitor is working under a conditional fee agreement and will not charge you for their services if you lose your claim, it is likely that the other side will also need to appoint a solicitor to defend your claim and therefore, should your claim against them be unsuccessful, they will expect to recover their legal costs and disbursements from you personally.
To protect you against the risk of these costs your solicitor will usually recommend that you purchase an After the Event Insurance policy so that should your claim fail or if you are not able to fully recover your own legal costs and disbursements then the After the Event insurer will pay these costs on your behalf. Your solicitor should provide you with details of any After the Event Insurance policy they recommend and, as with all insurance policies, you will be responsible for making sure you comply with all of the terms and conditions of insurance to ensure your complete protection.
- This is an insurance policy that covers the payments you might be responsible for as a result of pursuing your claim such as your own legal costs and disbursements and/or the other side’s costs.
- So, if I take my Solicitors advice, respond to them promptly, co-operate fully with them and am completely honest about my claim but still lose it won’t cost me anything?
- Not a penny normally unless you withdraw your claim for no good reason or if your claim is fraudulent.
These are the main reasons but if you are unsure you can always check your copy of the Conditional Fee Agreement and if you are still worried you should contact your Solicitors who will be glad to answer your questions.
- Not a penny normally unless you withdraw your claim for no good reason or if your claim is fraudulent.
- Do I have to pay now for the After the Event Legal Expenses Insurance?
- No. Subject to your approval, your Solicitors will purchase this cover on your behalf to make sure you are protected.
- Will I ever have to pay for the After the Event Insurance or will the premium come out of my compensation?
- No. The cost of the insurance is deemed to be a valid disbursement incurred on your behalf and it is therefore recoverable from the other side as with your legal costs and all other reasonable disbursements. It is also normally the case that should the Courts not consider the cost of the insurance to be reasonable then you should expect any shortfall to be covered under the policy of insurance itself.
- Will I have to pay the After the Event Insurance premium if I lose?
- The insurance policy normally covers the cost of the premium so if you lose this should be paid by your insurance company.
- Will any money be taken out of my compensation?
- No, providing you follow your Solicitors advice, respond to them promptly, co-operate fully with them and are completely honest about your claim.
- So, if I win all my costs should be met by the other side and even if they are not met in full I’m covered by the After the Event insurance?
- Yes, providing your comply with the relevant terms and conditions of the After the Event Insurance policy which your solicitor will normally assist you with.
- If I lose my case, my Solicitors won’t charge me and the insurance covers all the other costs that I might be liable for provided I have been honest and co-operative and have not just withdrawn my claim for no apparent reason?
- Yes
- So getting Justice and compensation won’t cost me anything?
- Correct
