Tweet
There is currently a Bill before Parliament which if approved and given Royal Assent will spell the death of Conditional Fee Agreements. Why you may ask?
Well, the no win no fee agreement means if you win you pay the solicitors basic charges and crucially the success fee. What is a success fee? well under no win no fee, you dont pay your solicitor unless and until the case is won. If you lose then the solicitor does not get paid, he risks working sometimes over a year for the risk of no money. How many people would go to work if their boss said "well Fred, we want you to come here every day work your ass off and you may get paid if you do a good job but if you dont you wont get sod all"???????
Well thats what your lawyer faces when he accpets your case on no win no fee. So the sweetener for him is the success fee.
The success fee is anywhere between 65% to 100% of the basic fee.
Example
If your bill is £10k then with success fee it is £20k if the success fee is 100%
No win no fee allows many people access to justice who are ineligible for Legal Aid etc so it serves a purpose and furthermore currently the costs are recovered from the opponent if the case is won.
Enter the Jackson Reforms under the guise of the Legal Aid, Sentencing and Punishment of Offenders Bill.
Justice Jackson has decided that the success fee should no longer be recovered from the opponent!!!! and this is included within the bill.
What does this mean for you? well ill be blunt. If you instruct the firm i work for or any other firm on no win no fee, if you win, we will recover the basic fees from the opponent, then we will present you with a bill for the successfee!!!! why ? because Justice Jackson thinks you should pay, thats why.
I have lobbyed my MP Chris Huhne and pointedo ut that this will hit those worst off. i raised the issue of the many many people whom we have represented who did not have a pot to piss in and who were facing losing their homes, and said if no win no fee was as per the Jackson reforms, then these people would not be able to secure legal assistance as they would not be able to afford to pay the success fee.
However, i have just had a letter back from Jonathan Djanolgy MP the under sec of State for Justice.
Ill scan it and post it when i can.
It is clear that this MP has either no sense!! or has missed the point.
The Jackson reforms are clearly aimed at Claimants who either have money and thus can afford to pay their own legal fees or claimants who recover huge damages, again they can afford to pay their legal fees. However, they dont take into account those sued by credit card and banking providers who if they win do not receive an award of damages. In fact most people i represent who win , the only benefit they get is relief that their home is safe, they get no financial gain as such.So while the reforms are right in the Claimant side of the fence they hit the Defendant side of things with equal measure and in my mind that is wrong. Everyone should have the right to justice but sadly with the harsh restrictions on Legal Aid and now this, many more people will be facing real difficult times.
I think we all need to lobby our MPs and push for the Jackson reforms to have exemptions where the person who is being sued by Banks etc and where no damages are recovered, then the Claimant remains liable for the Defendants legal fees.
Well, the no win no fee agreement means if you win you pay the solicitors basic charges and crucially the success fee. What is a success fee? well under no win no fee, you dont pay your solicitor unless and until the case is won. If you lose then the solicitor does not get paid, he risks working sometimes over a year for the risk of no money. How many people would go to work if their boss said "well Fred, we want you to come here every day work your ass off and you may get paid if you do a good job but if you dont you wont get sod all"???????
Well thats what your lawyer faces when he accpets your case on no win no fee. So the sweetener for him is the success fee.
The success fee is anywhere between 65% to 100% of the basic fee.
Example
If your bill is £10k then with success fee it is £20k if the success fee is 100%
No win no fee allows many people access to justice who are ineligible for Legal Aid etc so it serves a purpose and furthermore currently the costs are recovered from the opponent if the case is won.
Enter the Jackson Reforms under the guise of the Legal Aid, Sentencing and Punishment of Offenders Bill.
Justice Jackson has decided that the success fee should no longer be recovered from the opponent!!!! and this is included within the bill.
What does this mean for you? well ill be blunt. If you instruct the firm i work for or any other firm on no win no fee, if you win, we will recover the basic fees from the opponent, then we will present you with a bill for the successfee!!!! why ? because Justice Jackson thinks you should pay, thats why.
I have lobbyed my MP Chris Huhne and pointedo ut that this will hit those worst off. i raised the issue of the many many people whom we have represented who did not have a pot to piss in and who were facing losing their homes, and said if no win no fee was as per the Jackson reforms, then these people would not be able to secure legal assistance as they would not be able to afford to pay the success fee.
However, i have just had a letter back from Jonathan Djanolgy MP the under sec of State for Justice.
Ill scan it and post it when i can.
It is clear that this MP has either no sense!! or has missed the point.
The Jackson reforms are clearly aimed at Claimants who either have money and thus can afford to pay their own legal fees or claimants who recover huge damages, again they can afford to pay their legal fees. However, they dont take into account those sued by credit card and banking providers who if they win do not receive an award of damages. In fact most people i represent who win , the only benefit they get is relief that their home is safe, they get no financial gain as such.So while the reforms are right in the Claimant side of the fence they hit the Defendant side of things with equal measure and in my mind that is wrong. Everyone should have the right to justice but sadly with the harsh restrictions on Legal Aid and now this, many more people will be facing real difficult times.
I think we all need to lobby our MPs and push for the Jackson reforms to have exemptions where the person who is being sued by Banks etc and where no damages are recovered, then the Claimant remains liable for the Defendants legal fees.
Comment