Success Fees – FAQ’s

WHAT ARE THEY?

Success Fees are a mechanism by which a Solicitor will enter into an agreement with you for you to pay up to 25% of the damages you recover to that Solicitor in Costs. The Fee is only payable if the claim is successful and damages recovered. However, in some cases, your solicitor might charge a 0% success fee. This means you’ll receive 100% of any compensation awarded.

WHAT DO THEY MEAN

In the main, they mean that you will be paying part of your solicitor’s charges for running the claim for you. This being the case the Solicitor should account to you for the work they have done to justify charging the success fee. If they do not you may be able to challenge that fee.

WHY DO SOLICITORS CHARGE THEM

In the main, because they are only entitled to fixed amounts of fees from Insurances companies who you are claiming against. This is the case for all Road Accident and Employer/Occupier or Public Liability claims with a value under £25,000 in damages.

Often the work that a solicitor will do for you in these cases will amount to a greater figure than the fixed costs available to them.

WHAT SHOULD I EXPECT FROM MY SOLICITOR

At all times a clear explanation of the fees they are going to charge you and why they are charging. They should be clear on the amounts, the timing of the payments and any other options you may have to fund that claim such as legal expense insurance you have already paid for elsewhere.

WHAT DOES A SUCCESS FEE INCLUDE

This is where you need to read the small print. There are many different approaches to the deduction of success fees and whether they include VAT, exclude VAT or have some element of administration charge or insurance product charge added. Always ask for a breakdown at the outset of how a fee is charged and an example.

CAN I COMPARE SUCCESS FEES AND SOLICITORS

Most Solicitors will not advertise their fee charges nor publish guidance on a website or other media for you to review. Always look at the No Win No Fee section of any material published and simply ask the question.

At Hayes Connor we work on a No Win No Fee basis and any success fee that is applicable will not exceed 25%. In some cases, particularly group actions, we offer 0% success fees.

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