One way of funding your compensation claim is a “No Win, No Fee” agreement, also known as a “Conditional Fee Agreement”.
You and your solicitor agree that you will only have to pay your solicitor’s fees if you win your case. If you win your case, you should receive 100% compensation and in addition your costs of the claim will usually be recovered from the other side – so it’s a win:win situation for you. There are very few exceptions to this but your solicitor will explain this to you before you start your claim. Your solicitor may also purchase an after the event insurance policy on your behalf to cover your disbursements (e.g. the cost of obtaining medical reports etc.) and the other side’s legal costs should you lose your claim.
Who pays the lawyer’s costs?
Most people who consider making an accident compensation claim will be worried about how much it will cost to pay their legal fees and what will happen if they lose. Everyone knows that legal costs can be high, so it is very important you find the funding method for your claim that best suits your circumstances. Whatever you choose, your funding method must adequately protect you against the costs which could arise from a claim.
The general rule is that if you win your case, your legal costs of the claim will usually be recovered from the losing party, along with the agreed compensation for your injuries. The losing party should pay all your solicitor’s normal fees, their “success fee” and your expenses, including the insurance premium. If you lose your compensation claim, then under a “No Win No Fee” agreement you will not have to pay your solicitor’s costs.
How do I know if I am eligible for a No Win No Fee claim?
Your solicitor will usually arrange an initial meeting with you to assess the strength of your claim and discuss the options available to you to fund your compensation claim. Only when they have made this assessment will they decide if it is appropriate to offer you a “No Win No Fee” agreement. Your solicitor will explain all the details of this agreement to you in full before you begin your compensation claim. You should note that cases are only taken on a "No Win, No Fee" basis, if they are likely to be successful.
You can be assured that any solicitor you choose through our service will not ask you to ever enter into a loan agreement to fund your claim.
How much will it cost me?
Under a “No Win No Fee” agreement you will only be responsible for your solicitor's costs if you win your case, although these costs of the claim will usually be recovered from the losing party. However, such an agreement does not usually mean that you will not have to pay anything, and therefore an “ATE” policy (after-the-event policy) is usually taken out on your behalf by you solicitor. This is to cover the risk of having to pay the other side’s legal costs if you lose your case and disbursements that incur as your case proceeds - such as court fees, medical report fees and police accident report fees.
The ATE premium is not payable until the end of the case (deferred premium) and the premium is not payable if you lose your case. If you win your case, the ATE premium is recoverable from the losing party as an expense. Your solicitor will be able to advise you fully about this before you begin your compensation claim.
What are the other methods of funding your claim?
Other than “No Win No Fee” agreements, there maybe other options available to fund your claim. Looking at them briefly:
• Legal Expenses Insurance - Legal expenses insurance, also known as before-the-event insurance, is usually sold with other insurance. You may be unaware that you have this type of insurance because it is often included free or as an add on to your: a) House insurance; b) Motor insurance; c) AA cover; d) RAC cover; e) Travel insurance; f) Bank accounts; g) Credit cards; h) Pet Insurance.
If you have this kind of insurance to cover your legal costs, you may not need a ‘no win, no fee’ agreement.
What is covered under this type of insurance?
The cover provided by this type of insurance varies but it will often pay for your solicitor's fees and expenses, any costs for expert witnesses, court fees and your opponent's legal costs.
Can I choose my own solicitor?
Most policies say you can choose your own solicitor, but only if legal proceedings have already started. At any earlier stage the insurance company can refuse your choice of solicitor without giving any reason. Your solicitor will advise you how to persuade the insurance company to let you use the policy and choose who will act for you. If it refuses, your solicitor may still be able to act for you under a “No Win No Fee” agreement.
How do I find out if my accident claim is covered by a policy?
The first step is to remember who your insurer was at the time the injury occurred - this may be different from your present insurer. Don’t forget to check all your insurance policies as you may be covered on one rather than another.
Your policy schedule should indicate if Legal Expenses Insurance is available. If you are in any doubt as to whether you are covered, simply ring up your insurers and ask. Alternatively, you could show the policy schedule to your solicitor, who will be able to advise you.
• Legal Aid - Legal Aid is generally no longer available in personal injury cases except for medical negligence claims. However, Legal Aid may be available for matters where the legal costs are likely to exceed £20,000 or where the costs of investigating a case would be at least £3,000. Every case is individual and your solicitor will be able to advise you.
• Trade Union - If you belong to a trade union and have had an accident at work, then you may be entitled to receive free access to legal advice as part of your membership. If this is the case then, provided you have paid your membership fees, you should receive the full financial support of your union.
• Private Funding - If you choose to fund your case privately i.e. by paying out of your own pocket, or have no other alternative, then you must be aware that you will be fully liable for all your solicitor’s costs and disbursements.
You will be charged an hourly rate which will depend upon the experience of your solicitor. Rates often start at £95.00 per hour and can rise substantially. VAT is also paid on legal fees – that adds another 17.5% to your bill. You can agree with your solicitor to not carry out work beyond a certain amount of money without your prior authority.
However, if you win your claim and receive damages in excess of £1,000 then your solicitor will recover your reasonable legal costs from the losing party.
Your solicitor will be able to advise you fully about this before you begin your compensation claim.
What “damages” are recoverable?
Any solicitor you instruct from our panel will aim to get you the maximum compensation.
You can claim “General Damages” for your injuries, the ‘pain and suffering’ you have sustained as a result of the accident and for the ‘loss of enjoyment of life’ by, for example, not being able to pursue your hobbies.
You may also be able be entitled to claim “Special Damages” for lost earnings, potential loss of future earnings and for any expenses which are necessary to aid your recovery such as prescription costs, nursing care and rehabilitation costs.
Once you have started your claim, your solicitor will be able to give you a more realistic estimate of how much compensation you are likely to receive.
Saturday, July 31, 2010
Friday, July 30, 2010
No Win No Fee Claims - What Are Your Choices?
Every day thousands of people suffer accidents that are not their fault. Only a very small percentage of these unfortunate people end up getting the compensation they are entitled to.
One reason that the vast majority of these people never get what they deserve is because they themselves do not pursue legal action.
The legal process can often be a long, stressful and drawn out process, and people know this. This alone is often enough to discourage people from seeking legal action, even if they are convinced that they have suffered because of someone else's mistake. The deciding factor for most people however, is the perceived cost of proceedings.
About half way through the 1990s a policy of no win, no fee claims were introduced by many legal firms and claims services.
The no win no fee claims policy meant that a client could commission the services of a legal professional safe in the knowledge that if they were to lose the case then they would not be landed with a huge bill.
The no win no fee claims system meant that many people who before would not have considered making a legal claim were able to do so. Even if they won, they were still able to take home 100% of the compensation as legal firms were able to reclaim their fees from the insurance of those you are claiming against.
These days, for people who have suffered an accident that was not their fault, the biggest decision is not whether or not to seek legal advice but where to seek it. The choice those seeking legal advice face is, firstly, between a claims service and a law firm. Though the difference between these options may seem trivial, it will actually make a big difference to your experience of the claims procedure.
A no win no fee claims service is often a company which specializes in dealing with these specific accident cases. What they tend to do is act as a 'middle man' between you and the company who will then represent your case in court. Though many people have very positive experiences through these companies, they can be impersonal and misleading.
By far the best option is to use a well established law firm to represent you. These firms should not cost you any more than a claims service as they still have a no win, no fee claims procedure. What makes the difference is the level of service that you will receive.
If you choose a local legal firm then you will get a personal service from a company who has a reputation to uphold.
It will also mean that you get far more face to face contact with your representative rather than just speaking on the phone. There are thousands of companies that deal with no win no fee claims.
It is mistake however to think that they can all represent you in the same way. If your claim is to be successful you need to use someone who is both competent and trustworthy.
One reason that the vast majority of these people never get what they deserve is because they themselves do not pursue legal action.
The legal process can often be a long, stressful and drawn out process, and people know this. This alone is often enough to discourage people from seeking legal action, even if they are convinced that they have suffered because of someone else's mistake. The deciding factor for most people however, is the perceived cost of proceedings.
About half way through the 1990s a policy of no win, no fee claims were introduced by many legal firms and claims services.
The no win no fee claims policy meant that a client could commission the services of a legal professional safe in the knowledge that if they were to lose the case then they would not be landed with a huge bill.
The no win no fee claims system meant that many people who before would not have considered making a legal claim were able to do so. Even if they won, they were still able to take home 100% of the compensation as legal firms were able to reclaim their fees from the insurance of those you are claiming against.
These days, for people who have suffered an accident that was not their fault, the biggest decision is not whether or not to seek legal advice but where to seek it. The choice those seeking legal advice face is, firstly, between a claims service and a law firm. Though the difference between these options may seem trivial, it will actually make a big difference to your experience of the claims procedure.
A no win no fee claims service is often a company which specializes in dealing with these specific accident cases. What they tend to do is act as a 'middle man' between you and the company who will then represent your case in court. Though many people have very positive experiences through these companies, they can be impersonal and misleading.
By far the best option is to use a well established law firm to represent you. These firms should not cost you any more than a claims service as they still have a no win, no fee claims procedure. What makes the difference is the level of service that you will receive.
If you choose a local legal firm then you will get a personal service from a company who has a reputation to uphold.
It will also mean that you get far more face to face contact with your representative rather than just speaking on the phone. There are thousands of companies that deal with no win no fee claims.
It is mistake however to think that they can all represent you in the same way. If your claim is to be successful you need to use someone who is both competent and trustworthy.
Wednesday, July 28, 2010
No Win No Fee
No Win No Fee and Power Questions?
Maybe some of you have heard of the no win no fee term and know what it’s supposed to mean. For those of you who don’t, I’m going to give a definition.
The no win no fee arrangement is the one in which you don't pay anything ever! So, in other words, if you want to file an injury claim or get an accident at work compensation, etc. and you hire a lawyer that doesn’t win your case, you don’t pay him anything.
So this is a piece of very good news. Let me explain to you why.
The no win no fee arrangement (or the conditional fee arrangement, how it’s technically called) gives the opportunity to claim for people who could not have afforded it otherwise.
From what I’ve told you, you can draw the conclusion that your opponent pays your solicitor if your case is a winner. Yes, that’s true. If your case isn’t won then you don't pay anything. So my advice here is simple: request for a compensation claim when you know you are not at fault. I mean, if you’ve been involved in a work accident or a road accident that you are positive it wasn’t your fault then claim for your compensation. If you are not that sure your appointed lawyer will assess your case and will let you know.
NO WIN NO FEE
So, which are the situations that can make you eligible for requesting a compensation claim under a no win no fee arrangement? You can easily find a solicitor who works on this basis if you’ve suffered one of the following: an accident at work, a road accident, an injury caused by a mistake in your medical treatment or an accident suffered in a public place. So, when claiming there can be 2 outcomes: you win or you lose.
YOU WIN
Your experienced solicitor will get you maximum amount of compensation, that's his job. As I explained earlier, if your lawyer takes on your compensation claim case and he succeeds you get your rightful compensation, that is 100% of the compensation money. You might be thinking 'who's going to pay my lawyers fees?' the answer to this question is simple. The party you are claiming against pays your solicitors fees because why should you pay for something that wasn't your fault?
YOU LOSE
It's not impossible, it can happen. Your lawyer will analyse your case before he takes it on board. In the possibility of him not succeeding you walk away empty handed and you pay nothing ever!
So, as always, there are 2 sides to every story.
The term “no win no fee” is straightforward as it sounds. Working along side the no win no fee arrangement basically helps people and you have nothing to lose.
No one can 100% guarantee you that they’ll win your case, even if all the evidence is in your favour. Your solicitor will do everything in his power to win your case because he’ll want to get his fee. There’s no doubt about that.
But sometimes he may do everything humanly possible and still lose. Don't worry as you will have that no win no fee arrangement with your solicitor.
Maybe some of you have heard of the no win no fee term and know what it’s supposed to mean. For those of you who don’t, I’m going to give a definition.
The no win no fee arrangement is the one in which you don't pay anything ever! So, in other words, if you want to file an injury claim or get an accident at work compensation, etc. and you hire a lawyer that doesn’t win your case, you don’t pay him anything.
So this is a piece of very good news. Let me explain to you why.
The no win no fee arrangement (or the conditional fee arrangement, how it’s technically called) gives the opportunity to claim for people who could not have afforded it otherwise.
From what I’ve told you, you can draw the conclusion that your opponent pays your solicitor if your case is a winner. Yes, that’s true. If your case isn’t won then you don't pay anything. So my advice here is simple: request for a compensation claim when you know you are not at fault. I mean, if you’ve been involved in a work accident or a road accident that you are positive it wasn’t your fault then claim for your compensation. If you are not that sure your appointed lawyer will assess your case and will let you know.
NO WIN NO FEE
So, which are the situations that can make you eligible for requesting a compensation claim under a no win no fee arrangement? You can easily find a solicitor who works on this basis if you’ve suffered one of the following: an accident at work, a road accident, an injury caused by a mistake in your medical treatment or an accident suffered in a public place. So, when claiming there can be 2 outcomes: you win or you lose.
YOU WIN
Your experienced solicitor will get you maximum amount of compensation, that's his job. As I explained earlier, if your lawyer takes on your compensation claim case and he succeeds you get your rightful compensation, that is 100% of the compensation money. You might be thinking 'who's going to pay my lawyers fees?' the answer to this question is simple. The party you are claiming against pays your solicitors fees because why should you pay for something that wasn't your fault?
YOU LOSE
It's not impossible, it can happen. Your lawyer will analyse your case before he takes it on board. In the possibility of him not succeeding you walk away empty handed and you pay nothing ever!
So, as always, there are 2 sides to every story.
The term “no win no fee” is straightforward as it sounds. Working along side the no win no fee arrangement basically helps people and you have nothing to lose.
No one can 100% guarantee you that they’ll win your case, even if all the evidence is in your favour. Your solicitor will do everything in his power to win your case because he’ll want to get his fee. There’s no doubt about that.
But sometimes he may do everything humanly possible and still lose. Don't worry as you will have that no win no fee arrangement with your solicitor.
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