How Are Success Fees In Personal Injury Claims Calculated?
Welcome to our guide exploring the success fees in personal injury claims. We need to make it clear from the start success fees are not part of personal injury claims but are part of a No Win No Fee contract you may sign to have a solicitor represent you. When hiring a solicitor under a No Win No Fee agreement, known as a Conditional Fee Agreement CFA you’re required to pay a success fee to them to cover their fees if the claim wins. Our guide aims to help you understand how this is calculated and why it was introduced.
In 2012, the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) changed the way solicitors could recover their costs under Conditional Fee Agreements. No Win No Fee is an umbrella term for Conditional Fee Agreements CFA, Contingency Fee Agreements and Damages Based Agreements DBA.
However, we’ll look at them in more detail throughout our guide.
It’s important to be aware that although pursuing a claim without a solicitor bears no initial costs, there are certain costs that you may incur during your claim such as medical fees. However, these are often covered under a No Win No Fee agreement so it’s likely you won’t be required to self-fund.
Please continue reading for more information. Alternatively, if you have any questions, please don’t hesitate to contact our team:
- Telephone – 0800 073 8804
- Send your query to an advisor using the contact form
- Speak with an advisor instantaneously using the live chat feature below
Select A Section
- A Guide To How Are Success Fees In Personal Injury Claims Calculated?
- What Is A Success Fee In A Personal Injury Claim?
- Updates Made To 2021 Personal Injury Claims
- Why Success Fees Were Updated
- How Claims For Road Traffic Accidents Have Changed?
- How Much Are Success Fees In Personal Injury Claims?
- Assessing Your Claim
- Do All Solicitors Charge The Same Success Fees In Personal Injury Claims?
- Calculating Personal Injury Claim Payouts
- Examples Of Other Damages
- No Win No Fee Success Fees In Personal Injury Claims
- Request A Consultation
- Essential Injury Claim References
- FAQs About Success Fees In Personal Injury Claims
Before we look at the success fee in more detail, it can be helpful to know what a personal injury claim is. If you suffered harm after someone failed to provide a duty of care they owed you, you may have grounds to seek compensation. The accident could have happened at work, in a public place, such as a shop, or on the road, such as in a cycling accident.
This guide will provide information on the compensation you may be entitled to for your pain and suffering. Additionally, we’ll look at the evidence you may need to provide in support of your claim. For instance, to prove negligence occurred and highlight the extent of your injuries or condition.
It’s important to note that you can submit a claim without a solicitor. However, it can be beneficial to have a solicitor’s expert knowledge guiding you through the process. For that reason, we’ll look at the options you have in regards to legal representation.
We understand that No Win No Fee agreements may seem complex. However, our guide aims to better your understanding of what they involve. For instance, the costs they cover and the success fee that will be taken if your claim is successful.
No matter what stage you’re at, whether you’ve already started your claim or you’re currently in the process of deciding your next steps, either way, our guide could help. But if you do have any questions please don’t hesitate to contact our team on the number above.
Solicitors who operate on a No Win No Fee basis will take a percentage of your compensation package if they win your claim. This is known as a success fee and pays your solicitor for the time they’ve spent working on your case.
However, depending on whether you fund your solicitors work under a CFA or DBA, the fee is calculated differently.
For DBA’s, solicitors will set a pre-agreed settlement percentage if they get you the amount they agreed on in your claim. If they succeed, they’ll take a percentage of this amount. However, if your claim fails or they get you less than the agreed amount, you may not be required to pay the success fee.
Whereas for CFA’s, the success fee is taken as a percentage of your compensation, regardless of the settlement figure you receive. However, as per the Conditional Fee Agreements Order 2013, the fee is legally capped at 25% for personal injury claims.
This is deducted from your compensation at the end. However, your solicitor will make you aware of the success fees in personal injury claims they charge.
We understand you may be wondering who pays your solicitors fees if your case wins. Prior to LASPO 2012, solicitors were able to recover all their legal costs from the defendant, including the success fee. In addition, the defendant would be expected to pay the claimants compensation.
However, solicitors are no longer able to do this. They can get the majority of their costs and fees from the defendant in a successful case. But, claimants are required to pay their solicitors a success fee, which is deducted from their compensation only in successful claims.
Depending on who was responsible for the accident, there is a chance they have insurance in the event that someone suffers harm because of their negligence. For instance, employers are expected to have insurance as per the Employers Liability (Compulsory Insurance) Act 1969.
The insurance is in place to ensure employees are paid any compensation owed to them. Furthermore, it prevents businesses becoming financially at risk by paying compensation themselves.
However, before LASPO 2012, defendants were expected to pay all the claimants legal costs as well as compensation. As a result it impacted businesses and insurance companies.
By introducing changes, it took the burden off insurers involved in civil claims.
However, by preventing solicitors from recovering their success fees from the defendant, they were at risk of losing out financially. For that reason, the success fee is paid by claimants in a successful case to reimburse solicitors for their time spent.
If injuries are valued at less than £5,000, claims should be made through the government online claims portal. However, claims where injuries are valued at £5,000 or more aren’t required to be processed this way.
No matter whether you’re required to make your claim through the governments portal or not, you are still entitled to seek legal representation. This can be done through a No Win No Fee agreement. The difference here is that when claims are made through the government portal the solicitor can not receive any costs from the other side.
If you are unsure of the value of your injuries, please get in touch with our team. An advisor can assess whether the reforms to whiplash claims apply to you.
What are success fees in personal injury claims? Success fees are fees that the solicitor can take from a claimant’s compensation if it is successful and they have chosen to fund the solicitors work through a CFA. It is not compulsory to have a solicitor represent you. You are well within your right to go at it alone. Also, there are other ways solicitors’ fees can be paid. Success fees are a part of No Win No Fee agreements.
If you do decide you want to hire a solicitor you can use a CFA to fund their work. A condition of the CFA will be that if the case is successful the solicitor can take a portion as the success fee to cover their work.
However, generally, for Conditional Fee Agreements CFA, the success fee is legally capped at 25%. Meaning solicitors can’t take more than this.
Furthermore, here at Legal Expert, our solicitors could offer you a lower rate rather than the standard rate of 25%, depending on your case. If you’d like to find out more, get in touch with our team on the number at the top of the page.
In order to seek compensation, it’s important to hold a valid claim regardless of whether you seek legal representation. This means a personal injury claim must be able to demonstrate the three criteria of negligence, which include:
- Someone owing you a duty of care
- Someone breaching their duty of care to you
- You suffering harm as a result
If you do seek the help of a solicitor, they will assess the validity of your claim and the chance it has of succeeding. For more complex claims, you may be encouraged to take out insurance in the event that your claim fails.
Before The Event is often included in home insurance policies, however, you should check with your provider to determine whether it’s included. Whereas After The Event is an option for those who don’t have BTE as it can be taken out before submitting your claim.
If you require further information on the different insurance policies available, please speak to our team of helpful advisors on the number above.
If you have chosen to hire a solicitor through a CFA, they will often charge the full 25% success fee in the event that a claim is successful. However, there may be certain cases where they take a reduced percentage.
Here at Legal Expert, each of our solicitors’ works on a No Win No Fee basis and there are instances where they can charge a lower rate for certain cases.
For more information on the success fees in personal injury claims, solicitors may charge as their fee call our team using the number at the top of the page.
Compensation is often comprised of general and special damages. General damages is the compensation you may receive for any physical or psychological injuries.
In order to accurately value your injuries, consideration will be given to the severity of the harm you’ve suffered and the likelihood of your injuries having a long term impact.
For that reason, medical evidence will be required to understand the extent of your condition. For instance, medical reports outlining any treatment or diagnosis you received.
Furthermore, you may be asked to attend an independent medical assessment to provide an additional report. The report can help to show the current state of your condition. Additionally, the report can provide details on the long term impact your injuries may have had.
Alongside the above medical evidence, a document called the Judicial College Guidelines (JCG) may also be used to value your claim. We have created the table below using figures from the JCG. This can provide examples of the compensation you could claim for different types of injuries.
|Eye||A minor eye injury such as exposure to smoke or liquids which cause temporary pain and vision impairment.||£3,710 to £8,200|
|Ear||Complete loss of hearing in both ears.||£85,170 to £102,890|
|Chest||Residual damage to the lungs through inhaling toxic fumes or smoke.||£5,000 to £11,820|
|Shoulder||Minor (ii): A soft tissue injury that results in a complete recovery within a year.||£2,300 to £4,080|
|Arm||A serious fracture to the forearm that causes permanent disability.||£36,770 to £56,180|
|Wrist||A minor undisplaced wrist fracture that results in a full recovery within a year.||£3,310 to £4,450|
|Leg||Severe: (iii) A serious compound fracture that results in ongoing issues.||£36,790 to £51,460|
|Ankle||A modest injury such as an undisplaced fracture.||Up to £12,900|
However, please call our team if your injury isn’t listed or you have any questions about how compensation may be calculated.
In addition, you can seek compensation for any financial losses under special damages. For instance, if you were unable to work for a few months due to your injury. In this instance, you could be compensated for any loss of earnings during this period of time.
Furthermore, other types of special damages might include:
- Care costs for yourself or someone else you care for, e.g. a child, sibling or elderly parent
- Medical expenses, e.g. counselling, medication or physical aids such as walking sticks
- Travel expenses, e.g. taxis or public transport to and from hospital appointments
However, it’s important to note that you will need to provide evidence that these losses occurred. For instance, evidence in the form of receipts, invoices or pay slips which may be requested to support your claim.
For more information on other financial losses you may be able to seek compensation for, speak to a member of our team.
We understand that the prospect of seeking legal representation can often be daunting and seem complex. However, the option of a No Win No Fee agreement can help. It can be beneficial to those who want to avoid:
- Upfront costs
- Other costs that may incur during your claim
Each of our personal injury solicitors at Legal Expert operate under a CFA. This means that if they fail to succeed with your claim, you won’t be asked to pay your solicitor fees.
Whereas if they are successful, you will need to pay a small success fee that is deducted from your compensation package. However, your solicitor will calculate and make you aware of the fee prior to starting your claim.
Furthermore, our solicitors can charge a lower rate in some cases rather than the maximum 25%.
If you would like to know more about how much success fees in personal injury claims are charged by solicitors, get in touch with an advisor on the number above.
Our advisors are available 24/7 to answer your questions. They can offer free legal advice and free valuation of your claim. If you’re unsure of whether the claim you hold is valid or you’re unsure how much it’s worth, they can help.
They can assess your case and if they feel it has a chance of succeeding, they can connect you with one of our solicitors. A solicitor can then work with you to determine the next steps you’ll need to take.
However, if you aren’t ready to start your claim yet, our advisors can still help by answering any questions you may have. We understand the process can seem overwhelming, but our advisors are here to provide more information.
For further help and advice, get in touch using any of the following options:
- Telephone 0800 073 8804
- Send your query to an advisor using the contact form
- Speak with an advisor instantaneously using the live chat feature below
See the government guide on claiming compensation after an accident.
Visit the NHS website if you require any medical advice.
The Royal Society for the Prevention of Accidents (ROSPA) has useful information on preventing accidents.
For more information on claiming compensation for a fatal accident, see our guide.
Our guide on personal injury claims against your employer could be helpful if you’ve suffered an accident at work.
If you were injured in a bus accident, you could be entitled to seek compensation. For more information, see our guide.
- Personal Injury Claim Interim Payments
- Proving Liability and Injuries in A Slip and Fall Case
- Chopping Or Slicing Injury Claims
- HAVS Compensation Claims
- Claiming For A Whiplash Injury With Pre Existing Condition
- Accidents at Home Injury Claims Guide
- Personal Injury Claims In Scotland Calculator
- Lung Disease Compensation Claims
- Paisley Personal Injury Solicitors
The following section will look at commonly asked questions about personal injury claims.
What could I be asked to pay if I win my claim?
This depends. If you have hired a solicitor using a No Win No Fee agreement you’ll be asked to pay a legally capped success fee. However, your solicitor will make you aware of this prior to going ahead with your claim.
What could I be asked to pay if I don’t win my claim?
This again depends on different factors.
Can I switch my claim to your solicitors?
It may be possible for you to switch your claim from your current solicitor to one of our solicitors. Please get in touch with our team on the number at the top of the page for more information.
Could I get financial help during my claim?
For some cases, your solicitor could put in an application for an interim payment. This may only be possible in cases where the defendant has admitted liability. However, it means you could access part of your compensation before the claim settles.
Thank you for reading our guide on the success fees in personal injury claims solicitors can charge for their fees. We hope you found it informative.
Guide By Mitchell
Edited By Melissa.