Funding Your Professional Negligence Claim

We advise on a number of matters, including solicitor and barrister negligence, surveyor negligence, architect negligence, financial adviser negligence, mortgage broker negligence and accountant negligence.

Options for Funding Your Claim

At Seth Lovis & Co., there are a number of ways that a claim in professional negligence may be funded. These include:

We charge an agreed amount per hour for the work done. This rate depends upon the nature and complexity of the case and the experience of the lawyer dealing with it.

These are sometimes known as a 'no win no fee' agreements. Given our expertise in professional negligence claims, we can often agree to act in such claims under a CFA.

We only charge you if you 'win' and if you do, we will usually recover our basic charges from the losing party. However, you will have to pay our success fee as this is not recoverable from the losing party. 

A CFA is not a 'no recover, no fee agreement' so legal costs become payable by you upon a successful case regardless of whether the losing party pays. It is therefore important that a party to litigation who is considering instructing a solicitor (and/or barrister) to act under a CFA, considers the likely prospects of recovery of its legal costs from the other side.

This is where you pay our discounted hourly rate(s) as if under a Private Retainer but then pay our normal rates and a success fee if you win.

We agree a set fee for a particular piece of work. See in particular Our Streamline Service.

You may have a Legal Expenses Policy which will cover some or all of your legal costs. These policies often form part of car, credit card or household insurance policies.

We have good relationships with Legal Expenses Insurers and Brokers who can arrange insurance against adverse costs (having to pay the other side's costs if you lose)  and your own disbursements (expenses). The cost of the premium is, however, not recoverable from the losing party unless the case is within insolvency proceedings, or is a claim for defamation or mesothelioma (see above).

This is where a Third Party, often a private equity firm, will pay your legal costs (or some of them) in return for taking a percentage of any damages (compensation) you receive. This is normally an option only when damages will be significant although because of changes to the rules about recoverability of legal costs which apply from April 2013, this option may become more prevalent.

These are agreements where if you are successful, the solicitor takes a percentage of the damages for his fees. Historically, these types of agreements were only available in limited cases which included insolvency proceedings and actions brought in certain tribunals. However, following changes made in April 2013 to the funding of litigation and in particular the recoverability of success fees in most civil litigation, solicitors and their clients may now enter into DBAs for other litigation.

Where previously a solicitor may have acted under a Conditional Fee Agreement where  both his basic charges and a success fee are recoverable from the losing party, since April 2013, a successful litigant cannot recover the success fee from the losing party so the winning party will have to pay the success fee himself. It is therefore becoming more common for a litigant instead to enter into a DBA with his solicitor whereby the solicitor is paid an agreed percentage of the damages he recovers.

As a general rule in litigation, the losing party will pay the winning party's reasonable legal costs. However, if the claim is for less than £10,000 it will normally be a small claim and the winning party may only recover a very small amount of its legal costs, known as 'fixed costs' (note, however,the small claims limit is different for housing disrepair and personal injury claims). Therefore, it is often not cost-effective to instruct a solicitor to deal with a small claim under a CFA or an Hourly Rate Retainer. We  can offer a fixed fee solution:  to, for instance, write a letter or draft court papers. Read more about Our Streamline Service here.

We have considerable experience in advising on the best way to fund your legal case.  Our solicitors have good experience with CFAs and are happy to consider acting for a client under such an agreement where the client has a good case. 

Regardless of how you decide to fund your claim, we are committed to finding a reasonable and cost-effective solution for your legal issue.

We will advise you at the outset about any liability you may have for legal costs and will make sure you are comfortable with the action we intend to take on your behalf before proceeding.

We invite you to contact our firm online, email us at call us on 0330 134 2582. We are happy to book consultations at your convenience. At Seth Lovis & Co., the initial consultation is free.

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