Release date: October 2009

It is always annoying when a few elements within any profession or trade act in such a way that bad publicity is generated. The public tends to tar everyone with the same brush.

Take, for example, No Win No Fee Agreements which are commonly used to pursue personal injury claims, and which are now spreading into other aspects of legal work, such as general litigation. There has been a lot of bad press about such Agreements recently with claimants having unexpected deductions made from their compensation usually in respect of insurance policies, which are so expensive that in some cases the compensation is all but wiped out. The whole purpose of embarking upon a claim for damages is to be awarded some financial recompense for an often painful wrong that has been inflicted upon the client, not to help line the pockets of large insurance companies or lawyers.

Transparency in dealing with costs and clients' compensation is a real watchword at Close Thornton. We only enter into a No Win No Fee Agreement with a client on the basis that the client will receive 100% of their compensation at conclusion of the case. No deductions guaranteed. Of course, in the majority of cases, we back No Win No Fee Agreements with an insurance policy, as this provides protection for the client against an adverse costs order. The difference is that we use a particular policy which does not require payment of the premium up front. It only becomes payable if the claim is successful. Even then, there is no deduction from compensation because we include a claim for the insurance premium as part of the overall claim for legal costs. The client therefore receives 100% of their damages and our costs are paid by the other party in addition to the compensation.

At the outset, we take a great deal of time to explain to clients all issues relating to costs. A No Win No Fee Agreement backed by insurance is not a straightforward matter, but we pride ourselves in knowing that not a single client will leave our Personal Injury or Litigation departments in any doubt at all as to how the Agreements work or what is going to happen regarding legal costs. Yes this takes some time, which we know other firms are not prepared to spend, but we consider entering into a No Win No Fee Agreement as a joint venture between us and our client and we make sure there will be no nasty surprises for him or her at the end of the claim.

For further details or advice on any personal injury claim or litigation matter contact Shaun Burke on 01325 466461 or Shaun Burke

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