Claims are most commonly brought on the basis of a no win, no fee agreement but we will discuss all funding options with you to ensure that you have peace of mind when it comes to paying for your claim.
There are different ways of paying your legal costs and insuring against your liability to pay the defendant’s legal costs. We have summarised below the main funding options but the most suitable options will vary from one person to another according to their own particular circumstances. For any enquiries, please contact us on +44 (0)20 7833 4433 or contact us online for a free and confidential consultation where we will discuss whether you have a claim, how likely you are of winning, and how your case could be funded.
- Is there any upfront cost?
- How are Personal Injury and Medical Negligence Claims funded?
- What happens if my claim is unsuccessful?
- What do I pay if my case is successful?
Is there any upfront cost?
Under a CFA with us you will not have to pay any upfront costs. If, however, your claim is successful, you will be liable to pay something, which is explained in more detail below. We work hard to ensure that your liabilities for legal costs are kept to a minimum by recovering as much as possible from your opponent so you can keep the majority of your compensation.
How are Personal Injury and Medical Negligence claims funded?
There are five ways that a Personal Injury or Medical Negligence claim is funded:
- Conditional Fee Agreement, commonly known as “no win, no fee agreements”
- Legal Expenses Insurance
- Trade Union Membership
- Legal Aid (in very specific types of Medical Negligence birth injury claims)
- Private Funding
Conditional Fee Agreement (CFA), commonly known as ‘no win, no fee agreements’
The majority of Personal Injury and Medical Negligence cases are handled on a CFA basis. A CFA is an agreement between you and Bindmans setting out both the funding arrangement, i.e. your liability in relation to costs following a successful claim – see what do I pay if my claim is successful for more detail, as well as the roles and responsibilities between you and us.
Under a CFA we advise that you take out an insurance policy (known as “After The Event, or ATE Insurance”), which we can do on your behalf. This policy normally covers ours and your opponents legal fees and costs, such as expert reports or other disbursements if your claim is unsuccessful – see what happens if my claim is unsuccessful for more detail.
If, however, your claim is successful then we will seek to recover our fees and costs from your opponent.
Legal Expenses Insurance (LEI)
You may already have Legal Expenses Insurance through home, motor or travel insurance. In some cases, you might have LEI via your credit card agreement with your bank. It is designed to cover your legal costs for either making or defending a claim. In most cases, your LEI may only cover you for Personal Injury claims; however, if you have suffered from Medical Negligence, we suggest that you consider reviewing your insurance documents carefully as cover will vary depending on the policy provider.
LEI is known as ‘Before The Event Insurance’, or ‘BTE Insurance’, because the cover was taken out prior to the date of the negligent action.
It may be possible to use LEI to fund either your Personal Injury or Clinical Negligence claim, but this will depend on the terms of your policy and the level of indemnity provided. If you are considering bringing a claim for Personal Injury or Clinical Negligence, our solicitors can review your policy documents and inform you on whether you are able to fund your claim through LEI. Please call us on 020 7833 4433 or contact us online to discuss this further.
Trade Union Membership
If you are a member of a trade union, one of the benefits may be that they will fund your personal injury claim for you. However, the exact nature of this funding and how it works will depend on the union you are a member of.
Our solicitors can advise you about whether your trade union might fund your claim in a free initial consultation.
Legal Aid funding is restricted to specific birth injury claims arising from medical negligence involving serious neurological injuries (such as cerebral palsy) which occur within the first 8 weeks of a child’s birth.
For more advice about these types of claims, please contact one of the specialist solicitors on +44 (0)20 7833 4433 or contact us online to have a free and confidential consultation.
What happens if my claim is unsuccessful?
If your claim is funded by a CFA and you have taken out ATE Insurance, you will usually not pay anything if your claim was unsuccessful as we will not charge you for the work we have undertaken and any costs or disbursements, such as expert reports, as these would be covered by the insurance policy you have taken out. Your opponent’s legal costs would also be covered by insurance.
What do I pay if my case is successful?
If your claim was funded through a CFA and has reached a successful conclusion and you receive an award for damages, you will be liable to pay for costs which are not recoverable from your opponent, such as part of the ATE Insurance premium. Our costs, which you will be updated on every six months during the course of your claim are usually recovered from your opponent.
In addition to deducting the non recoverable part of the ATE Insurance premium from your damages, you will also be liable to pay a success fee, which is no longer recoverable from your opponent. The standard rate for a success fee is capped at 25% of the amount you receive in damages for the pain and suffering you endured, and for your past losses. The amount you receive for future losses will not be considered when calculating the success fee.
The success fee will also be deducted from your damages. Please note that before proceeding to settle your claim, we will calculate and inform you of any costs that would be deducted from your damages.