There are various funding options which may be available to fund a personal injury claim. Below are some of the options:
“No Win, No Fee” agreements known as a Conditional Fee Agreement
This is an agreement which is a legally binding documents between the firm of Solicitors and their client. Where the lawyers’ fees and expenses are only payable under the specified terms of the agreement. Which is typically if the client is successful.
To be able to take a claim on under this type of funding arrangement the claim does have to have a good chance of success (more than 50%). These types of agreements have a success fee attached to them, which is an uplift on the basis charges and reflects the risks of the claim to the firm including the risk that the claim may not be successful.
If the client is not successful with their claim they are generally, not liable for their lawyer’s fee but still may be responsible for the disbursements (such as court fees, medical or expert reports and potentially the other side costs). The disbursements costs may be covered by taking out an After the Event Insurance which will protect the client from having to pay the disbursement costs if they are not successful. These can be purchased at the beginning of the claim some insurers will agree that the payment of the policy can be deferred to the end of the claim if the matter is successful. If the claim is not successful then the client then under the terms of the insurance policy may not be asked to pay for the insurance.
If the claim is successful, then the client will be asked to pay a contribution towards the costs of their claim for the success fee and the after the event insurance and any unrecovered costs. Usually, the contribution for the fees is capped at 25% of the client’s damages and past losses.
Before the Event Legal Expenses Insurers
This is an insurance policy which the client may have the benefit of which was taken out prior to an accident when purchasing an insurance such as a home or car insurance. Under the terms of their insurance this policy covers them for adverse costs of making a claim.
Damages-Based Agreements (DBA’s)
This is an agreement where a fixed fee will be deducted from pass losses this will be agreed with the client at the beginning of the claim. These are generally not used due to the regulatory uncertainties.
Trade Union Membership
If a person is a member of a trade union, they may have access to legal advice through their trade union membership.
Legal Aid
This is generally unavailable for personal injury claims there are exceptions for specific cases, such as claims for abuse of children and vulnerable adults and certain clinical negligence claims.
Private Funding
A client may choose to fund their claim privately to meet their fees. But the client will be responsible for the costs even if the claim is not successful.
It is best to discuss the funding options which are available to you with your Solicitor before entering into an arrangement.
If you have had an accident in the last 3 years and wish to discuss making a claim, please feel free to call us on 01952 525925 or e-mail us on claims@martinkaye.co.uk.