How Much Do Solicitors Take From Compensation?

How much do solicitors take from compensation?

When making a claim, one of the most important things to consider is how much you are likely to pay your solicitor. There are various fee structures that can be agreed between solicitors and their clients, including:

• Hourly rates
• Damages Based Agreements (DBA)
• Conditional Fee Agreements (CFA)

In personal injury cases, conditional fee agreements are the most widely used option. Under this type of agreement, solicitors will deduct their fees as a percentage of your compensation (general damages and special damages, excluding future losses).

These agreements are commonly referred to as “no win, no fee.”

We understand that you may be concerned about your award of compensation being taken up by legal fees, most notably solicitor fees.

Beacon Law are a firm of no win, no fee solicitors, specialising in personal injury. Making a no win no fee claim means that you will not be expected to pay the legal costs of bringing a claim if your case is unsuccessful. If you are wondering ‘how much do solicitors take from compensation?’, please read the information below.

How much do solicitors take from compensation if your claim is successful?

If your personal injury compensation claim is successful, law firms will charge a success fee.

Personal injury lawyers will deduct the success fee and outstanding legal costs from the sum of compensation that has been awarded. The amount that a solicitor can take from the value of compensation awarded has been capped at 25%. A common misconception is that personal injury lawyers will automatically deduct 25% of a success fee. This is not the case, however.

Sometimes, the legal costs and success fee may not amount to 25% of the value of compensation awarded. In this case, the solicitor will deduct less than 25% from the compensation value that has been awarded.

In addition to our success fee, you may also be required to pay for an insurance policy, known as “After the Event (ATE insurance.” This policy is taken out to insure you against having to pay the defendant’s costs if the claim is unsuccessful.

In certain circumstances, you may be required to pay for additional legal costs. We will normally take the risk and make all necessary payments on your behalf. We may on occasion; however, ask you to pay for disbursements as your claim proceeds. In a claim for personal injuries, disbursements are likely to include but are not limited to the following expenses:

• GP and Hospital Records
• Experts Medical Report
• Counsel’s fees
• Court fees

These expenses should be recovered from your opponent in the event of a successful outcome of the claim. In the event of an unsuccessful outcome, these disbursements may be covered by an ATE or BTE insurance policy taken out in your name.

Rest assured, when our personal injury lawyers provide you with legal advice regarding your claim, they will ensure that you have been informed about the legal fees and other expenses that you will be required to cover if your compensation claim is successful.

What will you be required to pay if your case is unsuccessful?

If your case is unsuccessful, you will not be required to pay our firm’s fees.

Although you might not have to pay our firm’s fees if you lose, you may be personally responsible for payment of your opponent’s costs and expenses. For this reason we always try to offer the ‘No Win No Fee’ Agreement in conjunction with an insurance policy so that you will not incur personal liability for your opponent’s costs should the claim fail.

This means that you will not have to pay any fees if you lose. You will therefore, be able to pursue your claim with a considerable degree of security. This insurance policy is known as after the event insurance.

If you lose, the insurance premium may be self-funding and may pay for itself. If however, your claim is successful, you will be responsible for the payment of the insurance premium and the same would be deducted from your final compensation. We can assist with arrangements for this type of insurance and advise you on how much cover it provides you against your opponent’s costs.

How do I pay the legal costs?

When personal injury claims are successful, personal injury lawyers will receive the compensation settlement that has been awarded. The personal injury lawyers will then deduct the success fee, legal fees, and other expenses from this compensation amount. After the success fee and other costs have been deducted, you will then receive the remainder of the personal injury compensation that has been awarded. This goes for accident claims, medical negligence claims, other negligence claims, or any other type of personal injury claims.

At Beacon Law, we understand that you should not be left under financial pressure or strain after suffering a personal injury. We, therefore, ensure that our clients will not encounter any hidden legal costs or legal fees along the way during their personal injury compensation claim. Our personal injury lawyers will discuss the details of the legal costs you may be required to pay whilst they are providing legal advice at the beginning of the claims process so that you don’t have any surprise legal expenses arise.

Are there alternative ways to fund my claim?

Individuals pursuing personal injury claims have several alternatives to Conditional Fee Agreements (CFAs) for funding their legal representation. These options include:

Damages-Based Agreements (DBAs):

A DBA is a contingency fee arrangement where a solicitor’s payment is contingent upon the success of the case. These agreements are similar to conditional fee agreements. If the claim is successful, the solicitor receives a percentage of the damages awarded to the client.

In personal injury cases, this percentage is capped at 25% of the amount of compensation, excluding future pecuniary losses. If the claim is unsuccessful, the solicitor typically receives no fee.

Hourly Rate Agreements:

Under this traditional arrangement, clients pay solicitors based on the time spent on their case, billed at an agreed hourly rate. This method provides transparency regarding the work undertaken but can become costly, especially if the case is prolonged or complex. Clients are responsible for legal fees regardless of the case’s outcome.

Trade Union Assistance:

Members of trade unions may have access to legal assistance as part of their membership benefits. Unions often provide support for personal injury claims arising from workplace incidents, covering legal fees and offering representation. This support can alleviate the financial burden on the claimant.

When considering these funding options, it’s crucial to assess the potential financial implications and the level of risk involved. Consulting with a legal professional can help determine the most suitable arrangement based on individual circumstances.

Why choose Beacon Law?

We understand that no win no fee claim agreements can be confusing. We take the time to make sure all of our clients are fully informed about the potential costs of bringing a claim so that there are no surprises along the way.

Whilst pursuing a personal injury claim, Beacon Law can be your source of support and will help you recover the sum of compensation that you deserve. We understand that the process of making a personal injury claim can be difficult, so we will be there to guide you every step of the way.

Our personal injury solicitors will provide expert legal advice for many types of claims, including injuries arising from an accident at work, road traffic accident claims, medical negligence claims, and many more.

After suffering an injury, we believe you should be entitled to the best possible medical care and support, and we endeavour to provide this to our clients. Due to our association with medical professionals, we are able to provide you with private physiotherapy and rehabilitative treatment to assist you in your recovery.

We value each client that we have the pleasure of working with, listen carefully to our clients’ wishes, and aim to complete your claim in a timely manner so that you can receive the compensation that you deserve as soon as possible, without any hidden costs involved. If you are thinking ‘how much do solicitors take from compensation?’, call one of our specialist personal injury lawyers today on 0330 1332 857 or complete our online enquiry form for more information on the matter.