Conditional fee agreements after 1 April 2013—personal injury and clinical negligence

The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:

  • Conditional fee agreements after 1 April 2013—personal injury and clinical negligence
  • Key terms
  • What is a CFA?
  • Success fees
  • Requirements for all CFAs
  • Additional requirements for CFAs with a success fee
  • Do you need a risk assessment?
  • Calculating the success fee
  • Recovering the success fee and ATE insurance premium from the defendant
  • Before 1 April 2013
  • More...

Conditional fee agreements after 1 April 2013—personal injury and clinical negligence

This Practice Note explains how the conditional fee regime operates for personal injury and clinical negligence matters including:

  1. what a CFA is

  2. the regulatory requirements when entering into a CFA

  3. when success fees and insurance premiums are recoverable inter partes

  4. exceptions and transitional provisions

  5. grey areas

The Jackson costs reforms were implemented on 1 April 2013 including the removal of a claimant’s right to recover additional liabilities from the defendant, ie success fees and after the event (ATE) insurance premiums.

The regime is the product of sections 44–48 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) which amended section 58 of the Courts and Legal Services Act 1990 (CLSA 1990). There are no Conditional Fee regulations but CLSA 1990, s 58 should be read in conjunction with:

  1. Conditional Fee Agreements Order 2013 (CFA Order 2013), SI 2013/689

  2. Recovery of Costs Insurance Premiums in Clinical Negligence Proceedings (No 2) Regulations 2013, SI 2013/739

  3. relevant requirements in the SRA’s regulatory regime

Success fees and costs insurance premiums cannot be recovered from the losing party but this is subject to transitional provisions and there are limited exceptions which are explained below.

Key terms

ATE insuranceATE insurance to indemnify the unsuccessful client against the risk of having to pay their own

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