Quittance launch Fairer No Win, No Fee charter
Quittance Personal Injury announce a 'Fairer No Win, No Fee' charter (https://www.quittance.co.uk/no-win-no-fee-injury-compensation-claims). The charter is planned to ensure personal injury claimants receive a fairer deal and retain more of their compensation.
The principles of the 'Fairer' charter include a commitment to lower percentage success fee, more competitive insurance premiums and lower case loads.
Jeremy Garside of Quittance Personal Injury said: "This charter is intended to resolve what we see as fundamentally unfair aspects of the personal injury legal process."
Claimants who instruct a solicitor on a No Win, No Fee basis will enter into a Conditional Fee Agreement (CFA). In the majority of No Win, No Fee cases, claimants do not need to pay any legal fees to their solicitor if the claim is not successful. To encourage solicitors to take on No Win, No Fee cases, CFA agreements provide for a success fee may that is charged if the claim is won. The success fee is generally based on a percentage of the total compensation awarded.
Changes to the law in April 2013 mean that solicitors' success fees are now taken out of claimants' compensation. Prior to the changes, these success fees were paid by the defendant or the defendant's insurer.
Solicitors are restricted by the Ministry of Justice from taking more than a maximum of 25% of a claimant's compensation as a success fee. The majority of solicitors charge the maximum 25%.
To reduce the impact that success fees have on claimant compensation, the Court of Appeal increased general damages compensation awards by 10%. Despite this, compensation retained by many No Win, No Fee claimants is lower today than it would have been if awarded before the 2013 changes. Mr Garside said:
"The main principle of compensation is that it is paid to help people return to the position they were in before they sustained their injury. Compensation is calculated on this basis and making a deduction from this amount in the form of a success fee can only compromise the effectiveness of the process."
Quittance's Fairer charter mandates a maximum success fee of 15% of a claimants compensation. Mr Garside added:
"Solicitors working on a No Win, No Fee basis are taking on a risk, and success fees represent a way for solicitors to be compensated for this. At Quittance, we have no issue with the principle of success fees, but we believe that expecting the claimant to pay them is unfair. Claimants are left out of pocket and potentially unable to pay for the treatment they badly need.
A lower percentage success fee is the fairest approach under the current legal framework. By guaranteeing a maximum 15% success fee, we help claimants who instruct a Quittance panel solicitor to keep more of their compensation."
Notes for editors
About the company
Quittance Personal Injury are a regulated claims management company that manages a panel of specialist personal injury solicitors.
About Jeremy Garside
Jeremy Garside qualified as a solicitor in 1986 and is an experienced litigator. Jeremy is a director of Quittance.
For more information contact:
Quittance Personal Injury
Northdown House, 11-21 Northdown St, London N1 9BN
Tel: 0800 612 7456