For many years, Legal Aid has been available to help the less well-off through the legal minefield. Now, however, with stringent budget cuts, it is no longer obtainable in many cases, including those concerning personal accident. Claimants are increasingly turning to legal practices whose staff specialise in 'no win no fee' actions, or Conditional Fee Arrangements.
If the case is won, the successful client should receive a payment free from deductions, with his solicitor's fee paid by the losing side. An insurance policy known as 'after the event' would normally be taken out by the lawyer, and, in the event of failure, this would pay both costs and some, if not all, disbursements. These could include court fees and payment for medical reports. The winners are liable for anything the losers are not ordered to pay.
The Law Society itself has a branch called 'Accident Live' specialising in compensation claims, with a nationwide network of lawyers. The Society holds that if his or her client wins, a solicitor is entitled to both a normal fee and a 'success fee', usually paid by the losing party. Employers, for instance, are obliged to have insurance to cover any claims, including for personal injury. While some clients may feel compunction about suing, this is why such insurance exists.
In order for 'no win no fee' to be valid, solicitors must complete various formalities and give regular information to their clients. They are not obliged to take on clients on this basis; regarding personal injury claims, if a specialist solicitor has assessed his client and feels the case unlikely to succeed, he or she may refuse to accept it on those terms, as failure would result in non-payment.
It is possible that many more 'no win no fee' cases will result from this new law. Justice Secretary Kenneth Clarke has also proposed reforms, which would outlaw success fees and cap lawyers' share of damages at 25%. His Ministry feels that unregulated pay-outs have resulted in insurance premiums being driven up, while institutions like hospitals and businesses are threatened by high costs.
If the case is won, the successful client should receive a payment free from deductions, with his solicitor's fee paid by the losing side. An insurance policy known as 'after the event' would normally be taken out by the lawyer, and, in the event of failure, this would pay both costs and some, if not all, disbursements. These could include court fees and payment for medical reports. The winners are liable for anything the losers are not ordered to pay.
The Law Society itself has a branch called 'Accident Live' specialising in compensation claims, with a nationwide network of lawyers. The Society holds that if his or her client wins, a solicitor is entitled to both a normal fee and a 'success fee', usually paid by the losing party. Employers, for instance, are obliged to have insurance to cover any claims, including for personal injury. While some clients may feel compunction about suing, this is why such insurance exists.
In order for 'no win no fee' to be valid, solicitors must complete various formalities and give regular information to their clients. They are not obliged to take on clients on this basis; regarding personal injury claims, if a specialist solicitor has assessed his client and feels the case unlikely to succeed, he or she may refuse to accept it on those terms, as failure would result in non-payment.
It is possible that many more 'no win no fee' cases will result from this new law. Justice Secretary Kenneth Clarke has also proposed reforms, which would outlaw success fees and cap lawyers' share of damages at 25%. His Ministry feels that unregulated pay-outs have resulted in insurance premiums being driven up, while institutions like hospitals and businesses are threatened by high costs.
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