Fact Sheet 3: Conditional Fee Agreements: Some Questions Answered

Some common questions:

  • What other means of paying are available to me?

    See our leaflet, Funding Your Claim: the options, which sets out the possibilities in some detail.

    Our policy is to act in your best interests in order to find the best means of funding your claim, to suit your particular circumstances. We always check to see what your options are for funding the claim before considering your suitability for a conditional fee agreement.

    You may already have legal expenses insurance which may cover this claim, alternatively you may be eligible for legal aid.
  • Am I eligible for legal aid?

    As indicated above, we always check a client’s potential eligibility for legal aid, at the outset. We have concluded that you are not entitled to legal aid at present. If you are eligible for legal aid or subsequently become eligible then our policy is to encourage you to apply for legal aid rather than enter into or to continue instructing us under a conditional fee agreement. This eventuality is taken into account in the Conditional Fee Agreement itself.
  • Can I get insurance cover against having to pay the other side’s costs if I lose?

    Yes there are a number of litigation insurance companies who offer different rates and different levels of cover. Our current policy is to use the insurer recommended by the Law Society: Accident Line Protect.
  • How good are my chances of winning my case?

    We will make an initial assessment of the merits of your claim at our first meeting, we will then write and confirm that advice.

    The prospects of success will effect the level of the success fee.
  • Is it likely that my opponent can or will pay even if I win?

    The vast majority of individuals responsible for a personal injury have the benefit of Road Traffic Act or Public Liability Insurance. A victim injured by an uninsured driver can present a claim against the Motor Insurers Bureau, an agency set up specifically to deal with such claims. Your opponent’s ability to pay is one of the first enquiries we make on being instructed. We would advise you if there is a risk that your opponent may not be able to pay your damages.
  • What damages would I be likely to receive?

    We will make an initial assessment of the value of your claim at our first interview. However, until your symptoms have completely resolved or stabilised, it is not possible to make an accurate valuation of your likely damages.
  • What is the effect of winning on any DWP payment I may be receiving?

    If you are in receipt of means assessed state benefits then the receipt of a capital sum may effect your entitlement to future benefits. We will consider whether this is something which may concern you at our initial interview, when we will give you appropriate advice.
  • How is the “success fee” worked out?

    As explained above, the success fee is charged as a percentage of our “basic costs”, namely our normal charges.

    The percentage reflects a number of factors including: the risk that Lansbury Worthington will not recover our fees, whether the success fee is capped, whether there an additional Conditional Fee Agreement between Lansbury Worthington and a barrister and the arrangements we have agreed for funding your disbursements.

    Full details of our hourly charge rates (which make up our basic costs) and the percentage of the basic costs to be added to your bill (which is the success fee) will be clearly stated in the Conditional Fee Agreement.
  • What do “success” and “win” mean?

    Simply, that we succeed in recovering your damages.
  • What are solicitors basic costs and who pays these?

    These are based upon the hourly charge rate under a traditional private client retainer. The hourly charge rate takes into account the expense to Lansbury Worthington of the lawyer’s time and its incidental administrative costs together with a percentage uplift which reflects a variety of factors, including the complexity of the case, its urgency, its importance to you and the skill involved.

    Different hourly charge rates apply for the different categories of lawyer likely to be involved in your case. These will be clearly set out in the Conditional Fee Agreement.

    The basic rule is that a losing party pays the winning party’s reasonable costs and expenses of pursuing a claim. Accordingly, a successful party is generally entitled to recover the majority of their basic costs and disbursements from the opponent.

    The Court applies a policy of restricting a losing party’s liability for basic costs to the reasonable costs of taking steps that progress the claim (as opposed to all the costs of advising you about the claim and attending you generally). There is usually a shortfall of between 10% and 20% in the basic costs recovered. You are responsible for paying any shortfall in basic costs but only in the event of a successful outcome to your claim. However, we will absorb any shortfall in respect of the basic costs so that you will not face any additional charge
  • What expenses might I be required to pay and when?

    We have already set out details of the one-off insurance premium charge by Accident Line Protect for the litigation insurance policy above, under the heading “Conditional Fees Explained”. The premium is deferred until the end of the case so nothing is paid upfront.
    In a typical personal injury claim you might expect to incur the following disbursements:
  • Police Accident Report fee £80.00
  • Administration fees in obtaining access to your medical records of up to £100.00
  • Medical Report fee of about £500.00
  • Possibly a court fee if it becomes necessary to issue proceedings:
  • this depends on the value of your claim. £160.00 - £500.00
  • Possibly also counsel’s fees, inclusive of VAT £500.00 We shall endeavour to identify the likely level of expenditure at our first meeting.

    We would expect to recover all the disbursements that we will incur on your behalf from the opponent in the event of a successful outcome of the claim. Should your claim fail, the Accident Line Insurance Policy will reimburse you these expenses.
    We would normally pay these expenses and disbursements as the case proceeds and then recover these for you if your claim is successful. If your claim is not successful then the Accident Line insurance policy will usually pay the cost of these expenses.
  • What happens if I need a barrister?

    Barristers are not usually required in routine claims. However, should we decide that a barrister’s advice is necessary then we will probably advise you of this likelihood at our initial meeting. In which case, we would recommend employing a barrister under an ancillary conditional fee agreement. Under such an arrangement a barrister would charge an additional success fee. In the event of a successful outcome, we would expect to recover counsel’s basic fees and also the success fee.

    In the event that you were to lose your case then, like our own fees, counsel’s fees would not be payable.
    Should we need to instruct a barrister with whom we do not have a Conditional Fee Agreement, then you would be responsible for payment of his fees in the same way as the other expenses and disbursements. However, the Accident Line Protect Insurance Policy does not cover reimbursement of counsel’s fees in the event of an unsuccessful outcome. Accordingly, were we to incur counsel’s fees on your behalf then this would be reflected in the percentage of uplift in the success fee.

    If you choose a barrister whom we do not recommend, then we are likely to insist that you pay for his fees direct.
  • How will I be kept informed about the progress of my case?

    We refer you to our client care leaflet in which we set out details of our service. We will respond to letters and telephone calls promptly and will keep you regularly informed of developments in your case.

Other points and terms explained:

“disbursements”

These are expenses incurred on your behalf by Lansbury Worthington in order to progress your claim, such as court fees and consultancy fees. They are usually recoverable from your opponent in the event of a successful outcome to your claim.

“the expense rate”

The hourly rate charged by Lansbury Worthington, which varies according to the seniority and experience of the lawyer handling your claim. The hourly expense rate is designed to represent the cost to the firm of the lawyer’s time and his share of the office overheads and incidental expenses.

“the uplift”

The uplift represents the profit element of Lansbury Worthington’s basic costs. It also take into account the complexity of the case, its urgency, its importance to you and the skill involved in dealing with the claim. In routine claims the uplift is usually a minimum of 50%.

“basic costs”

These are the total of Lansbury Worthington’s normal solicitor client costs based on an hourly rate of charge (including our expense rate and the uplift thereon), see above.

“standard basis costs”

This is a matrix of costs which is applied by the Courts when deciding disputes over the level of costs that a successful party is entitled to claim from a losing party. The standard basis often results in recovery of between 80% and 90% of the basic costs actually incurred.

Disputing our costs

Please inform the person handling your case, either Charles Worthington or Hayley Madrick, of any concerns that you may have about our charges, first.
If you are still not satisfied then please contact the client care partner, Ben Lansbury, who will do what he can to address your concerns. The client cars partner will then respond in writing, acknowledging your objections, confirming any matters discussed and agreed upon, and advising you upon any decision taken or action proposed.

You will not be charged for our time spent dealing with a complaint internally.

If you remain dissatisfied then you can exercise your statutory right to have our bill reviewed by the Court using a procedure called “taxation of costs”, under the Solicitors Act 1974. Alternatively, if proceedings have not been issued, you have the right to apply to the Law Society for a Remuneration Certificate under the Solicitors (Non contentious Business) Remuneration Order 1994. The Law Society has the power to indicate what is a fair and reasonable fee and it can substitute a lower fee, if appropriate.

Contact Information

Please contact Hayley Madrick if you require any further information on conditional fees.
Telephone No: 020 8563 9797.

Other Leaflets and information:

The Law Society’s: conditional fees explained
  • Accident Line Protect: Legal rights for accident victims
  • The Law Society’s recommended Conditional Fee Agreement itself, which includes some helpful advice and explanation.